Apple could be compelled to permit rival app stores in UK.

The iPhone maker could be required to permit competitors to run separate app stores on Apple devices in the UK, following a ruling from the market watchdog.

This would be a significant change to Apple's well-known "closed system" where applications can only be downloaded from the company's App Store.

But the Competition and Markets Authority 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 "could be restricting progress and market rivalry".

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

"Mobile applications contributes one and a half percent of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these markets work well for enterprises," commented a senior official 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 recent analysis, 48.5% of UK mobile owners use an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

The Company's Reaction

The CMA's investigation examined how dominant Apple and Google's own apps are compared with competitors - as well as their browsers and platform software.

It is unclear what modifications the authority will seek to implement, but previously it published guidelines outlining potential measures it could take.

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

The Cupertino company specifically may be compelled to permit third-party marketplaces on its products, and enable people to install apps directly from companies' websites.

This would follow comparable regulations in the EU, which previously imposed measures against Apple for anti-competitive behaviour.

Apple cautioned the UK could lose access to receiving updates - as has happened in the EU - which the organization attributes to strict rules.

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

"Apple encounters fierce competition in every market where we operate, and we strive continuously to create the finest offerings, solutions and user experience," the organization said in a statement.

"The UK's adoption of European regulations would undermine that, resulting in consumers with reduced data protection and security, slower availability to new features, and a divided, less seamless experience."

The Search Giant's Position

Android users can currently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

The regulator's plan said the search company may have to "modify the interface" of installing applications directly from online sources, as well as "remove user frictions" when using third-party platforms.

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

The representative said "most" of Google device owners use alternative app stores 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 Apple devices.

"There are now 24,000 Android phone models from 1,300 phone manufacturers worldwide, facing strong rivalry from iOS in the United Kingdom," the representative continued.

Android is an open-source operating system, which means creators can utilize and develop on top of it for free.

Google contends this means it promotes market competition.

But advocacy organizations said curbs on these firms' dominance in other countries "currently assist enterprises to develop and providing customers more choice".