The tech giant may be forced to permit rival application marketplaces in UK.

Placeholder image Illustration of app stores

Apple may have to allow rivals to run separate application platforms on Apple devices in the UK, after a ruling from the competition regulator.

This represents a significant change to Apple's well-known "walled garden" where apps can only be downloaded from the company's App Store.

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

Regulatory Findings

The regulator said the tech firms "may be limiting progress and competition".

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

"Mobile applications generates one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's crucial these sectors function properly for enterprises," commented a top executive from the CMA.

Around 90-100% of British smartphones operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

According to current data, nearly half of UK mobile owners use an iPhone - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

Apple's Response

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

It is unclear what changes the authority will look to request, but earlier it published roadmaps detailing possible actions it could take.

These include requiring it to be more straightforward for people to switch between iOS and Android phones, and for both companies to list applications "in a fair, objective and transparent manner" in their app stores.

Apple particularly may be compelled to allow third-party marketplaces on its products, and let people to install apps directly from companies' websites.

This would mirror comparable regulations in the European Union, which previously took action against Apple for anti-competitive behaviour.

The technology firm warned the United Kingdom could face delays to getting new features - as has happened in the European Union - which the organization attributes to strict rules.

For instance, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the EU.

"We faces intense rivalry in every market where we operate, and we work tirelessly to create the best products, solutions and customer interface," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and safety, slower availability to latest functions, and a fragmented, less seamless user journey."

Google's Standpoint

Android users can presently use alternative marketplaces - though critics say they are not as smooth as the company's official application marketplace.

The regulator's plan said Google may have to "modify the interface" of installing applications straight from online sources, as well as "remove user frictions" when using alternative app stores.

"There appears to be no the rationale for today's designation decision," a Google policy executive stated.

The representative said "most" of Android users use alternative app stores or download apps straight from a developer's website, and claimed there is a much wider selection of apps available for Google device owners versus those on iOS products.

"Currently available are 24,000 Android phone models from 1,300 phone manufacturers globally, facing intense competition from Apple's platform in the UK," the spokesperson continued.

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

Google contends this means it promotes competition.

But advocacy organizations said curbs on these firms' dominance in different nations "currently assist enterprises to innovate and giving customers more options".

"Their dominance is now causing real harm by limiting options for users and competition for businesses," commented a consumer advocate.

Elizabeth Campbell
Elizabeth Campbell

Automotive industry expert with over 10 years of experience in car sales and market analysis, passionate about helping others make informed vehicle decisions.