🔗 Share this article

The iPhone maker may have to allow competitors to run their own application platforms on Apple devices across Britain, after a ruling from the market watchdog.

This would be a major shift to the company's infamous "closed system" where applications can only be installed from its own official marketplace.

But the UK competition watchdog has designated both the tech giants as having "strategic market status" - effectively saying they have a lot of power over mobile platforms.

Regulatory Assessment

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

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

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

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 use an iPhone - which runs Apple's iOS - with the vast majority of the rest using the Android OS.

Apple's Reaction

The regulatory probe examined how prominent Apple and Google's own apps are versus rivals - as well as their browsers and operating systems.

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

These comprise mandating it to be more straightforward for people to switch between iOS and Android devices, and for both firms to list applications "fairly and openly" in their marketplaces.

The Cupertino company specifically may be compelled to allow alternative app stores on its devices, and let people to install apps straight from developer sites.

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

Apple cautioned the UK could lose access to getting new features - as has occurred in the European Union - which the organization attributes to strict rules.

For example, some Apple Intelligence features which have been rolled out in other regions are not available in the EU.

"Apple encounters fierce competition in every market where we do business, and we strive continuously to create the best products, solutions and user experience," the organization said in a statement.

"The UK's adoption of European regulations would undermine that, resulting in consumers with weaker privacy and safety, slower availability to latest functions, and a divided, more complicated user journey."

Google's Standpoint

Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said Google may have to "change the user experience" of downloading apps straight from websites, as well as "remove user frictions" when using third-party platforms.

"We simply do not see the justification for today's designation decision," a company policy executive remarked.

The representative said "the majority" of Google device owners use third-party platforms or install applications straight from a creator's site, and asserted there is a much wider selection of applications available for Google device owners versus those on iOS products.

"Currently available are twenty-four thousand Android phone models from 1,300 device makers globally, facing strong rivalry from Apple's platform in the United Kingdom," the representative continued.

Google's platform is an open-source operating system, which means creators can utilize and develop on top of it for no cost.

The company contends this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in other countries "currently assist enterprises to innovate and giving consumers more options".

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