The tech giant may be forced to permit competing app stores within the United Kingdom.

Placeholder image Illustration of app stores

Apple may have to allow competitors to operate their own application platforms on Apple devices in the UK, after a decision from the competition regulator.

This represents a major shift to Apple's infamous "walled garden" where applications 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" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Findings

The regulator said the two companies "could be restricting innovation and competition".

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

"The app economy generates one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's crucial these sectors function properly for enterprises," stated a top executive from the CMA.

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

Based on current data, nearly half of British smartphone users own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

Apple's Response

The regulatory probe examined how dominant Apple and Google's own applications are compared with competitors - as well as their web applications and platform software.

It is unknown what changes the authority will look to request, but earlier it published roadmaps outlining possible actions it could take.

These comprise requiring it to be more straightforward for people to transition between Apple and Android phones, and for both firms to list applications "fairly and openly" in their app stores.

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

This would mirror a similar ruling in the EU, which previously took action against Apple for anti-competitive behaviour.

Apple warned the UK could face delays to receiving updates - as has occurred in the European Union - which the organization blames on strict rules.

For example, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the European market.

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

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

The Search Giant's Position

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

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

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

The executive said "most" of Android users use alternative app stores or download apps straight from a developer's website, and asserted there is a far greater range of apps offered for Android users versus those on Apple devices.

"Currently available are 24,000 Android phone models from 1,300 device makers globally, facing intense competition from Apple's platform in the UK," the representative added.

Android is an freely available software, which means developers can use and build on top of it for no cost.

Google contends this means it opens up market competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping businesses to innovate and giving consumers more options".

"The companies' control is now creating genuine problems by restricting choice for consumers and market rivalry for businesses," commented a policy expert.

Cassandra Boyle
Cassandra Boyle

A passionate horticulturist with over a decade of experience in organic gardening and landscape design.