🔗 Share this article

Apple could be required to permit rivals to run separate application platforms on iPhones in the UK, after a ruling from the market watchdog.

This would be a significant change to the company's well-known "closed system" where apps can only be downloaded from its own App Store.

But the Competition and Markets Authority has designated both Apple and Google as having "dominant market position" - indicating they have a lot of power over mobile platforms.

Regulatory Findings

The regulator said the two companies "may be limiting progress and competition".

But the authority emphasized it did not "determine or presume misconduct" from the firms.

"The app economy contributes one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's essential these sectors work well for business," stated a top executive from the competition authority.

Approximately ninety to one hundred percent of British smartphones run on Apple or Google's mobile platforms, creating what the authority calls an "virtual monopoly".

According to recent analysis, 48.5% of British smartphone users own an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

Apple's Response

The regulatory probe focused on how prominent the companies' own apps are compared with competitors - as well as their web applications and operating systems.

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

These include requiring it to be more straightforward for people to switch between iOS and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

The Cupertino company particularly may be required to permit alternative app stores on its devices, and enable people to install apps directly from developer sites.

This would mirror a similar ruling in the European Union, which previously imposed measures against Apple for restrictive practices.

Apple cautioned the United Kingdom could lose access to getting new features - as has occurred in the EU - which the company attributes to heavy regulation.

For example, some Apple Intelligence capabilities which have been launched in other regions are not available in the European market.

"We encounters fierce competition in every sector where we do business, and we strive continuously to create the finest offerings, solutions and customer interface," the company said in a release.

"The UK's adoption of European regulations would weaken that, resulting in consumers with reduced data protection and security, delayed access to new features, and a fragmented, less seamless experience."

The Search Giant's Position

Google device owners can presently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own Play Store.

The regulator's plan said Google may have to "change the user experience" of downloading apps straight from online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the justification for the current classification," a Google competition lead remarked.

The representative said "most" of Android users use third-party platforms or download apps straight from a creator's site, and asserted there is a far greater range of apps offered for Android users compared to those on Apple devices.

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

Android is an freely available software, which means creators can use and build on top of it for free.

The company contends this means it opens up competition.

But consumer groups said restrictions on these firms' dominance in other countries "are already helping enterprises to develop and giving customers more options".

"Their dominance is now creating genuine problems by limiting options for users and competition for businesses," stated a policy expert.