🔗 Share this article The tech giant may be forced to permit rival application marketplaces in UK. The iPhone maker could be required to permit competitors to run separate app stores on iPhones in the UK, after a decision from the market watchdog. This would be a significant change to the company's infamous "closed system" where apps can only be downloaded from its own App Store. But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - indicating they have a lot of power over mobile platforms. Regulatory Findings The regulator said the tech firms "may be limiting progress and competition". But the regulator emphasized it did not "determine or presume misconduct" from the firms. "The app economy contributes 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 UK mobile devices operate using the two tech companies' operating systems, creating what the authority calls an "virtual monopoly". 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 remaining users using Google's Android. The Company's Reaction The CMA's investigation examined how dominant the companies' own applications are compared with rivals - as well as their web applications and platform software. It is unclear what changes the regulator will look to request, but previously it published roadmaps outlining possible actions it could take. These include mandating it to be more straightforward for people to transition between iOS and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their marketplaces. Apple particularly may be compelled to allow third-party marketplaces on its products, and enable people to download programs directly from companies' websites. This would mirror comparable regulations in the European Union, which previously took action against the company for restrictive practices. The technology firm warned the United Kingdom could face delays to receiving updates - as has occurred in the EU - which the organization blames on strict rules. For example, some AI capabilities which have been rolled out in other regions are not available in the EU. "Apple faces fierce competition in every market where we do business, and we strive continuously to create the finest offerings, solutions and customer interface," the organization said in a statement. "Britain's implementation of European regulations would weaken that, leaving users with reduced data protection and security, delayed access to new features, and a divided, less seamless user journey." The Search Giant's Standpoint Google device owners can presently use alternative marketplaces - though commentators say they are not as smooth as the company's official application marketplace. The CMA's roadmap said Google may have to "change the user experience" of installing applications straight from online sources, as well as "remove user frictions" when using alternative app stores. "We simply do not see the rationale for the current classification," a company competition lead stated. The executive said "the majority" of Android users use third-party platforms or download apps straight from a developer's website, and claimed there is a much wider selection of applications offered for Android users compared to those on Apple devices. "Currently available are twenty-four thousand Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from Apple's platform in the United Kingdom," the spokesperson continued. Google's platform is an open-source operating system, which means creators can utilize and develop on top of it for free. The company argues this means it promotes competition. But consumer groups said curbs on these companies' power in different nations "currently assist businesses to develop and giving customers more choice". "Their dominance is now causing real harm by limiting options for users and market rivalry for businesses," commented a policy expert.