🔗 Share this article

The iPhone maker could be required to allow rivals to run separate application platforms on Apple devices in the UK, following a ruling from the competition regulator.

This represents a major shift to the company's infamous "closed system" where apps can only be installed from its own official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Watchdog Findings

The CMA said the two companies "could be restricting innovation and market rivalry".

But the authority clarified it did not "determine or presume wrongdoing" from the companies.

"The app economy generates one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these markets work well for business," commented a senior official from the CMA.

Around 90-100% of British smartphones run on the two tech companies' mobile platforms, creating what the regulator calls an "virtual monopoly".

Based on current data, nearly half of British smartphone users use an Apple device - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

The Company's Response

The regulatory probe focused on how prominent Apple and Google's own applications are compared with competitors - as well as their web applications and operating systems.

It is unknown what changes the regulator will look to request, but previously it published guidelines detailing possible actions it could take.

These comprise mandating it to be easier for people to switch between Apple and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company particularly may be required to permit third-party marketplaces on its devices, and enable people to download programs directly from companies' websites.

This would follow a similar ruling in the European Union, which previously took action against Apple for restrictive practices.

The technology firm cautioned the UK could lose access to getting new features - as has happened in the EU - which the organization blames on strict rules.

For instance, some AI features which have been launched in other regions are not accessible in the European market.

"We encounters intense rivalry in every market where we do business, and we work tirelessly to create the finest offerings, services and user experience," the organization said in a release.

"Britain's implementation of European regulations would undermine that, resulting in consumers with weaker privacy and security, slower availability to new features, and a divided, less seamless user journey."

The Search Giant's Standpoint

Google device owners can currently use third-party app stores - though commentators say they are not as user-friendly as Google's own Play Store.

The regulator's plan said the search company may have to "modify the interface" of downloading apps directly from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the justification for the current classification," a Google policy executive remarked.

The executive said "the majority" of Android users use third-party platforms or install applications straight from a developer's website, and asserted there is a far greater range of apps available for Google device owners versus those on Apple devices.

"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers worldwide, facing intense competition from iOS in the United Kingdom," the representative added.

Android is an open-source operating system, which means developers can use and build on top of it for free.

Google argues this means it promotes market competition.

But advocacy organizations said curbs on these firms' dominance in different nations "are already helping enterprises to innovate and giving customers more choice".

"The companies' control is now causing real harm by limiting options for users and market rivalry for businesses," stated a consumer advocate.