Apple and Google may have to change their app stores
The way we download apps onto our phones may be about to change following a ruling from the UK competition regulator.
The Competition and Markets Authority (CMA) has classified Apple and Google as having a “strategic market position” – effectively saying they have too much power on mobile platforms.
This means that the two technology giants may have to make changes, After the Capital Markets Authority said it “may limit innovation and competition”.
The ruling angered tech giants, with Apple saying it risked harming consumers through “weak privacy” and “delaying access to new features,” while Google called the decision “disappointing, disproportionate and unjustified.”
“We simply don’t see the rationale for today’s classification decision,” said Oliver Bethell, Google’s head of competition.
But the Capital Markets Authority said it did not “discover or assume any violations” on the part of the companies.
Will Hayter, executive director of digital markets at the CMA, said: “The app economy generates 1.5% of UK GDP and supports around 400,000 jobs, which is why it is important that these markets work well for business.”
The investigation into Apple and Google’s app stores, browsers and operating systems focused on how important their apps are compared to competitors.
“Around 90% to 100% of mobile devices in the UK run on Apple or Google mobile platforms,” the CMA said. He said previouslyAdding that this means the companies “have an effective duopoly.”
according to Analysis from Uswitch48.5% of users in the UK have an iPhone – running Apple’s iOS operating system – while the vast majority of the rest use Google’s Android operating system.
This comes after a separate decision taken by the Capital Markets Authority in October Google’s designated search section As it enjoys a strategic market position.
It is not known exactly what changes the regulator will look to require, but in July it published roadmaps outlining potential actions it will take if companies are found to have a strategic market position.
These requirements include that it be easier for people to transfer data and switch easily between Apple and Android devices, and that the two companies rank apps in a “fair, objective and transparent manner” in their app stores.
Apple could specifically be required to allow alternative app stores on its devices, and to allow people to download software directly from companies’ websites.
Such a move would be a major change to the so-called “closed system” that has defined iPhones since their inception, where apps can only be downloaded from Apple’s App Store.
Both are currently possible on Android devices, but the roadmap said Google may have to “change the user experience” for downloading apps directly from websites, as well as “remove user frictions” when using alternative app stores, such as listing them directly on the Google Play Store.
Android is an open source operating system, which means developers can use and build on it for free.
Google says this means it’s opening up competition.
Bethell said that “the majority of Android users” use alternative app stores or download apps directly from the developer’s website, and claimed that there is a much larger selection of apps available to Android users compared to those found on Apple devices.
He said: “There are now 24,000 Android phone models from 1,300 phone manufacturers worldwide, and they face intense competition from iOS in the UK.”
Meanwhile, Apple has warned that the UK could lose access to new features – as has happened in the EU – which the company blames on technology regulation.
For example, some Apple Intelligence features released in other parts of the world are not available in the European Union.
The company said in a statement: “Apple faces fierce competition in every market in which we operate, and we work tirelessly to create the best products, services and user experiences.”
“The UK’s adoption of EU-style rules would undermine this, leaving users with weaker privacy and security, delayed access to new features, and a fragmented and less seamless experience.”
But which consumer group? Limits on the power of these companies in other countries “really helps companies innovate and gives consumers more choices,” he said.
“Their dominance is now causing real harm by restricting choice for consumers and competition for businesses,” said Head of Policy and Advocacy Rocío Concha.