Apple could be compelled to permit competing app stores in UK.
Apple could be required to permit rivals to run their own app stores on iPhones across Britain, after a decision from the market watchdog.
This would be a major shift to the company's infamous "closed system" where apps can only be installed from its own official marketplace.
But the Competition and Markets Authority has designated both the tech giants as having "strategic market status" - indicating they have significant control over mobile platforms.
Regulatory Findings
The regulator said the tech firms "may be limiting progress and competition".
But the regulator emphasized it did not "find or assume wrongdoing" from the companies.
"Mobile applications generates 1.5% of the British economy and supports around 400,000 jobs, which is why it's essential these markets function properly for business," commented a top executive from the competition authority.
Approximately 90-100% of UK mobile devices run on Apple or Google's operating systems, creating what the authority calls an "effective duopoly".
Based on current data, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.
Apple's Response
The CMA's investigation focused on how prominent the companies' own apps are versus rivals - as well as their web applications and platform software.
It is unclear what modifications the authority will seek to implement, but previously it published guidelines detailing 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 rank apps "in a fair, objective and transparent manner" in their marketplaces.
Apple specifically may be compelled to permit third-party marketplaces on its devices, and let people to download programs straight from companies' websites.
This would mirror a similar ruling in the European Union, which previously took action against the company for anti-competitive behaviour.
The technology firm cautioned the United Kingdom could lose access to receiving updates - as has happened in the European Union - which the company blames on strict rules.
For example, some AI capabilities which have been launched in other parts of the world are not accessible in the European market.
"Apple encounters intense rivalry in every sector where we operate, and we strive continuously to create the best products, solutions and user experience," the organization said in a release.
"Britain's implementation of European regulations would weaken that, resulting in consumers with reduced data protection and safety, slower availability to latest functions, and a fragmented, less seamless user journey."
The Search Giant's Standpoint
Android users can presently use alternative marketplaces - though critics say they are not as smooth as the company's official application marketplace.
The CMA's roadmap said the search company may have to "modify the interface" of downloading apps straight from websites, as well as "remove user frictions" when using alternative app stores.
"There appears to be no the justification for today's designation decision," a Google policy executive stated.
The representative said "most" of Google device owners use third-party platforms or download apps straight from a creator's site, and claimed there is a much wider selection of applications available for Android users versus those on Apple devices.
"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry from iOS in the United Kingdom," the representative added.
Google's platform is an freely available software, which means creators can use and build on top of it for no cost.
Google argues this means it promotes competition.
But advocacy organizations said curbs on these firms' dominance in different nations "currently assist enterprises to innovate and providing consumers more choice".
"Their dominance is now causing real harm by limiting options for users and competition for businesses," commented a policy expert.
