🔗 Share this article

Apple could be required to allow rivals to run separate application platforms on iPhones across Britain, following a decision from the market watchdog.

This would be a major shift to Apple's infamous "closed system" where apps can only be downloaded from the company's official marketplace.

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

Regulatory Assessment

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

But the authority emphasized it did not "determine or presume wrongdoing" from the companies.

"The app economy contributes 1.5% of the UK's GDP and sustains around 400,000 jobs, which is why it's crucial these markets work well for business," commented a senior official from the competition authority.

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

Based on current data, 48.5% of British smartphone users own an Apple device - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

The Company's Reaction

The CMA's investigation focused on how dominant the companies' own applications are versus rivals - as well as their web applications and operating systems.

It is unclear what modifications the regulator will seek to implement, but earlier it published guidelines outlining possible actions it could take.

These comprise mandating it to be easier for people to transition between Apple and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

Apple specifically may be compelled to permit alternative app stores on its products, and let people to install apps directly from companies' websites.

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

Apple warned the UK could face delays to getting new features - as has occurred in the EU - which the organization blames on heavy regulation.

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

"Apple faces fierce competition in every market where we do business, and we work tirelessly to create the finest offerings, services and customer interface," the organization said in a release.

"The UK's adoption of European regulations would undermine that, leaving users with weaker privacy and safety, slower availability to new features, and a fragmented, more complicated user journey."

Google's Position

Android users can currently use third-party app stores - though critics say they are not as user-friendly as Google's own application marketplace.

The regulator's plan said the search company may have to "change the user experience" of installing applications directly from websites, as well as "eliminate barriers" when using third-party platforms.

"We simply do not see the justification for the current classification," a company policy executive remarked.

The representative said "the majority" of Android users use third-party platforms or install applications directly from a developer's website, and asserted there is a much wider selection of apps offered for Android users compared to those on iOS products.

"There are now twenty-four thousand Android phone models from thirteen hundred phone manufacturers globally, facing intense competition from Apple's platform in the United Kingdom," the spokesperson added.

Android is an freely available software, which means developers can utilize and develop on top of it for free.

The company contends this means it opens up competition.

But consumer groups said curbs on these companies' power in other countries "are already helping businesses to develop and providing customers more choice".

"The companies' control is now causing real harm by limiting options for consumers and competition for companies," stated a consumer advocate.