The tech giant may be forced to permit competing app stores in UK.

Placeholder image Illustration of app stores

Apple could be required to allow competitors to run separate application platforms on Apple devices across Britain, after a decision from the competition regulator.

This would be a major shift to the company's infamous "closed system" where apps can only be installed from the company's App Store.

But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - indicating they have significant control over smartphone ecosystems.

Watchdog Findings

The CMA said the two companies "may be limiting progress and market rivalry".

But the regulator clarified it did not "find or assume wrongdoing" from the firms.

"The app economy contributes 1.5% of the British economy and supports around four hundred thousand positions, which is why it's crucial these markets function properly for business," stated a senior official from the CMA.

Around ninety to one hundred percent of British smartphones run on the two tech companies' mobile platforms, creating what the authority calls an "effective duopoly".

According to recent analysis, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Reaction

The regulatory probe examined how prominent Apple and Google's own applications are compared with competitors - as well as their web applications and platform software.

It is unknown what changes the regulator will seek to implement, but previously it published roadmaps detailing possible actions it could take.

These include mandating it to be more straightforward for people to switch between Apple and Android devices, and for both firms to rank apps "fairly and openly" in their marketplaces.

The Cupertino company particularly may be required to permit alternative app stores on its devices, and enable people to install apps straight from companies' websites.

This would follow a similar ruling in the EU, which previously imposed measures against the company for anti-competitive behaviour.

Apple warned the United Kingdom could lose access to getting new features - as has happened in the European Union - which the company blames on strict rules.

For instance, some AI features which have been launched in other parts of the world are not accessible in the EU.

"Apple encounters intense rivalry in every sector where we do business, and we work tirelessly to create the finest offerings, solutions and customer interface," the company said in a release.

"Britain's implementation of European regulations would weaken that, resulting in consumers with reduced data protection and safety, delayed access to new features, and a fragmented, less seamless user journey."

The Search Giant's Standpoint

Google device owners can presently use third-party app stores - though critics say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said Google may have to "change the user experience" of installing applications straight from online sources, as well as "eliminate barriers" when using third-party platforms.

"We simply do not see the rationale for the current classification," a company policy executive stated.

The representative said "most" of Google device owners use alternative app stores or install applications directly from a developer's website, and claimed there is a much wider selection of apps available for Google device owners compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing intense competition from iOS in the UK," the spokesperson added.

Google's platform is an freely available software, which means developers can use and build on top of it for no cost.

Google argues this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in different nations "are already helping businesses to innovate and providing consumers more choice".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for businesses," stated a policy expert.

Robert Byrd
Robert Byrd

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