Apple could be compelled to permit competing app stores within the United Kingdom.

Placeholder image Illustration of app stores

The iPhone maker could be required to allow rivals to run their own application platforms on iPhones in the UK, following a ruling from the market watchdog.

This represents a significant change to Apple's infamous "closed system" where applications can only be installed from its own official marketplace.

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

Regulatory Assessment

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

But the authority emphasized it did not "find or assume misconduct" from the companies.

"Mobile applications generates one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these sectors function properly for business," stated a senior official from the CMA.

Around ninety to one hundred percent of UK mobile devices run on the two tech companies' mobile platforms, creating what the authority calls an "virtual monopoly".

According to recent analysis, nearly half of British smartphone users own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using the Android OS.

Apple's Response

The regulatory probe focused on how dominant Apple and Google's own apps are versus competitors - as well as their web applications and operating systems.

It is unclear what changes the authority will look to request, but previously it published guidelines outlining possible actions it could take.

These comprise requiring it to be more straightforward for people to transition between iOS and Android devices, and for both firms to list applications "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 install apps straight from companies' websites.

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

Apple cautioned 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 example, some Apple Intelligence features which have been launched in other regions are not accessible in the European market.

"We faces fierce competition in every sector where we do business, and we work tirelessly to create the best products, solutions and user experience," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, resulting in consumers with weaker privacy and security, slower availability to new features, and a divided, more complicated experience."

Google's Standpoint

Google device owners can presently use third-party app stores - though commentators say they are not as smooth as the company's official application marketplace.

The CMA's roadmap said Google may have to "change the user experience" of installing applications straight from websites, as well as "remove user frictions" when using alternative app stores.

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

The representative said "most" of Android users use alternative app stores or install applications directly from a developer's website, and claimed there is a far greater range of applications available for Google device owners 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 representative added.

Android is an freely available software, which means creators can utilize and develop on top of it for no cost.

The company argues this means it promotes market competition.

But consumer groups said curbs on these companies' power in different nations "currently assist businesses to innovate and giving customers more options".

"The companies' control is now causing real harm by restricting choice for users and market rivalry for businesses," commented a policy expert.

Kelsey Harmon
Kelsey Harmon

A savvy shopper and deal enthusiast with years of experience in finding the best bargains online and offline.