Apple could be compelled to permit rival app stores in UK.

Placeholder image Illustration of app stores

Apple could be required to allow competitors to run their own app stores on Apple devices across Britain, following a ruling from the competition regulator.

This would be a significant change to the company's well-known "walled garden" where apps can only be downloaded from its own official marketplace.

But the UK competition watchdog has designated both the tech giants as having "dominant market position" - indicating they have significant control over smartphone ecosystems.

Watchdog Findings

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

But the regulator clarified it did not "find or assume misconduct" from the companies.

"Mobile applications generates 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these sectors work well for business," stated a top executive from the competition authority.

Around 90-100% of British smartphones run on Apple or Google's mobile platforms, creating what the authority calls an "virtual monopoly".

Based on recent analysis, nearly half of UK mobile owners own an iPhone - which runs Apple's iOS - with the vast majority of the remaining users using Google's Android.

Apple's Reaction

The regulatory probe examined how dominant the companies' own applications are compared with competitors - as well as their browsers and platform software.

It is unclear what changes the authority will seek to implement, but previously it published guidelines outlining potential measures it could take.

These comprise requiring it to be more straightforward for people to transition between iOS and Android phones, and for both companies to list applications "fairly and openly" in their marketplaces.

Apple particularly may be required to allow third-party marketplaces on its devices, and let people to download programs directly from companies' websites.

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

The technology firm warned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the organization blames on heavy regulation.

For instance, some Apple Intelligence features which have been launched in other regions are not available in the EU.

"Apple encounters fierce competition 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 weaken that, resulting in consumers with weaker privacy and safety, slower availability to latest functions, and a divided, less seamless user journey."

Google's Standpoint

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 the search company may have to "modify the interface" of downloading apps straight from online sources, as well as "eliminate barriers" when using third-party platforms.

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

The executive said "the majority" of Google device owners use alternative app stores or install applications directly from a developer's website, and asserted there is a much wider selection of applications available for Google device owners versus those on iOS products.

"There are now twenty-four thousand Google-compatible devices from thirteen hundred device makers worldwide, facing intense competition from Apple's platform in the UK," the spokesperson continued.

Android is an freely available software, which means creators 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 companies' power in different nations "are already helping enterprises to innovate and providing customers more options".

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

James Alvarez
James Alvarez

A seasoned poker strategist with over a decade of experience in competitive online gaming and coaching.