Apple could be compelled to allow rival app stores within the United Kingdom.

Placeholder image Illustration of app stores

Apple could be required to permit competitors to operate separate application platforms on Apple devices in the UK, following a ruling from the competition regulator.

This would be a significant change to the company's well-known "closed system" where applications can only be installed from the company's official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - indicating they have a lot of power over mobile platforms.

Regulatory Assessment

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

But the authority clarified it did not "determine or presume misconduct" from the firms.

"The app economy generates 1.5% of the British economy and supports around four hundred thousand positions, which is why it's essential these sectors work well for business," stated a senior official from the competition authority.

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

According to current data, 48.5% of British smartphone users use an iPhone - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

Apple's Response

The CMA's investigation examined how prominent the companies' own apps 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 detailing possible actions it could take.

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

Apple specifically may be compelled to allow alternative app stores on its devices, and enable people to download programs straight from companies' websites.

This would follow a similar ruling in the European Union, which previously took action against Apple for restrictive practices.

The technology firm cautioned the UK could face delays to receiving updates - as has happened in the EU - which the organization attributes to strict rules.

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

"We encounters intense rivalry in every market where we do business, and we strive continuously to create the best products, services and customer interface," the company said in a release.

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

The Search Giant's Standpoint

Google device owners can currently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own application marketplace.

The CMA's roadmap said Google may have to "modify the interface" of installing applications directly from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for the current classification," a Google policy executive stated.

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

"Currently available are 24,000 Android phone models from thirteen hundred device makers globally, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson added.

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

The company argues this means it promotes market competition.

But consumer groups said curbs on these firms' dominance in other countries "are already helping businesses to develop and giving consumers more choice".

"Their dominance is now creating genuine problems by limiting options for users and competition for companies," stated a consumer advocate.

Daniel Robinson
Daniel Robinson

A seasoned entrepreneur and startup advisor with over a decade of experience in tech innovation and business growth strategies.