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The iPhone maker could be required to allow competitors to operate their own app stores on Apple devices in the UK, following a decision from the competition regulator.

This represents a significant change to Apple's infamous "walled garden" where apps can only be installed from its own App Store.

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.

Watchdog Findings

The CMA said the two companies "could be restricting progress and competition".

But the regulator emphasized it did not "determine or presume misconduct" from the companies.

"Mobile applications contributes one and a half percent of the British economy and sustains around 400,000 jobs, which is why it's essential these markets function properly for enterprises," stated a senior official from the competition authority.

Around ninety to one hundred percent of UK mobile devices run on the two tech companies' operating systems, creating what the regulator calls an "effective duopoly".

According to recent analysis, 48.5% of UK mobile owners use an Apple device - which runs Apple's iOS - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Response

The CMA's investigation focused on how dominant the companies' own applications are compared with competitors - as well as their browsers and platform software.

It is unknown what changes the authority will look to request, but earlier it published guidelines detailing potential measures it could take.

These include mandating it to be more straightforward for people to switch between iOS and Android phones, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.

The Cupertino company particularly may be compelled to allow alternative app stores on its products, and let people to download programs directly from companies' websites.

This would mirror a similar ruling in the European Union, which previously took action against Apple for restrictive practices.

The technology firm warned the United Kingdom could face delays to receiving updates - as has occurred in the European Union - which the organization attributes to strict rules.

For instance, some AI features which have been rolled out in other parts of the world are not available in the EU.

"We encounters fierce competition in every sector where we operate, and we strive continuously to create the best products, services and customer interface," the company said in a release.

"The UK's adoption of European regulations would weaken that, leaving users with weaker privacy and security, delayed access to latest functions, and a fragmented, less seamless user journey."

Google's Position

Android users can presently use alternative marketplaces - though commentators say they are not as smooth as the company's official application marketplace.

The regulator's plan said Google may have to "change the user experience" of downloading apps directly from websites, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the justification for today's designation decision," a Google competition lead stated.

The representative said "the majority" of Google device owners use third-party platforms or download apps straight from a developer's website, and asserted there is a much wider selection of apps offered for Android users versus those on iOS products.

"There are now 24,000 Android phone models from 1,300 device makers globally, facing strong rivalry from iOS in the UK," the representative continued.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for no cost.

The company contends this means it opens up market competition.

But advocacy organizations said curbs on these companies' power in different nations "are already helping enterprises to innovate and giving customers more choice".

"The companies' control is now causing real harm by limiting options for consumers and market rivalry for businesses," commented a policy expert.