Apple says UK mobile market shake-up could harm users and developers

LONDON, Aug 28 - Apple AAPL.O said on Thursday Britain's plans to increase competition in the mobile operating system market could harm users and developers, and potentially force the company to share its technology with foreign competitors for free.

Last month, Britain's competition regulator told Apple and Android-owner Google to be fairer in how they distribute apps on their mobile platforms, setting out possible interventions as it plans to designate the U.S. tech companies with strategic market status over their duopoly.

Apple said such a designation by Britain's Competition and Markets Authority (CMA) would undermine privacy and security protections and limit innovation in the sector.

"We're concerned these EU-style rules the UK is advancing are bad for users and bad for developers," an Apple spokesperson said.

"This approach undermines the privacy and security protections our users have come to expect, hampers our ability to innovate, and forces us to give away our technology for free to foreign competitors."

Designating Apple and Google with strategic market status would allow the regulator to impose behavioural rules to promote fair competition.

The CMA is due to make a final decision in October.

Apple said the CMA's roadmap for the sector prioritises measures including interoperability, which would require Apple to make its systems more compatible with third-party apps and services. It also focuses on so-called steering, which would let developers direct users to make purchases outside of Apple's App Store.

The company says these changes could expose users to scams and reduce its ability to invest in new technologies. It also questioned the evidence base used by the CMA, citing limited developer feedback and survey data.

Apple said it competes with companies such as Samsung and Google, and warned that the regulator's proposals could create an uneven playing field.

A CMA spokesperson said Britain's approach to digital market regulation differs significantly from the European Union model, offering more flexibility to tailor solutions that are proportionate and practical for both businesses and consumers.

"Driving greater competition on mobile platforms need not undermine privacy, security or intellectual property," it said.