The tech giant could be compelled to permit rival application marketplaces in UK.

Placeholder image Illustration of app stores

Apple could be required to permit competitors to operate separate app stores on Apple devices across Britain, following a ruling from the competition regulator.

This represents a major shift to Apple's infamous "walled garden" where apps can only be installed from its own official marketplace.

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Findings

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

But the regulator emphasized it did not "find or assume wrongdoing" from the companies.

"Mobile applications contributes one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's crucial these sectors work well for business," stated a senior official from the CMA.

Around 90-100% of British smartphones operate using Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

According to current data, 48.5% of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the remaining users using Google's Android.

Apple's Response

The CMA's investigation focused on how prominent Apple and Google's own applications 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 previously it published guidelines outlining possible actions it could take.

These comprise requiring it to be easier for people to switch between Apple and Android phones, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be required to permit alternative app stores on its devices, and let people to download programs straight from developer sites.

This would follow comparable regulations in the EU, which previously took action against Apple for anti-competitive behaviour.

The technology firm warned the UK could face delays to getting new features - as has happened in the EU - which the company attributes to heavy regulation.

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

"Apple faces fierce competition in every sector where we do business, and we work tirelessly to create the best products, services and customer interface," the company said in a release.

"The UK's adoption of EU-style rules would undermine that, resulting in consumers with weaker privacy and safety, delayed access to new features, and a divided, more complicated experience."

Google's Position

Google device owners can currently use third-party app stores - 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 "change the user experience" of downloading apps directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the justification for the current classification," a company policy executive stated.

The representative said "most" of Android users use third-party platforms or install applications directly from a creator's site, and claimed there is a much wider selection of apps offered for Android users versus those on Apple devices.

"Currently available are twenty-four thousand Android phone models from thirteen hundred phone manufacturers globally, facing strong rivalry from iOS in the UK," the representative added.

Android is an open-source operating system, which means developers can use and build on top of it for no cost.

Google contends this means it promotes market competition.

But consumer groups said curbs on these companies' power in different nations "are already helping enterprises to innovate and providing consumers more options".

"Their dominance is now creating genuine problems by limiting options for users and market rivalry for companies," commented a policy expert.

Lisa Pena
Lisa Pena

A seasoned digital marketer with over a decade of experience in driving online success for businesses worldwide.