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The iPhone maker may have to permit competitors to run separate app stores on iPhones across Britain, after a decision from the competition regulator.

This represents a significant change to Apple's infamous "closed system" where applications can only be downloaded from the company's official marketplace.

But the UK competition watchdog has designated both the tech giants as having "dominant market position" - indicating they have a lot of power over smartphone ecosystems.

Watchdog Assessment

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

But the regulator clarified it did not "determine or presume misconduct" from the firms.

"Mobile applications generates one and a half percent of the UK's GDP and supports around four hundred thousand positions, which is why it's essential these markets work well for enterprises," commented a senior official from the competition authority.

Around 90-100% of British smartphones operate using the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

Based on recent analysis, 48.5% of British smartphone users own an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using Google's Android.

Apple's Response

The CMA's investigation examined how prominent the companies' own apps are versus rivals - as well as their browsers and operating systems.

It is unknown what changes the authority will look to request, but earlier it published guidelines outlining possible actions it could take.

These comprise mandating it to be easier for people to switch between Apple and Android devices, and for both companies to list applications "fairly and openly" in their app stores.

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

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

Apple cautioned the United Kingdom could lose access to getting new features - as has occurred in the European Union - which the organization blames on strict rules.

For example, some AI features which have been launched in other parts of the world are not available in the European market.

"We encounters intense rivalry in every market where we operate, and we work tirelessly to create the best products, solutions and customer interface," the company said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with reduced data protection and safety, slower availability to latest functions, and a divided, more complicated user journey."

The Search Giant's Standpoint

Google device owners can presently use third-party app stores - though commentators say they are not as smooth as the company's official application marketplace.

The CMA's roadmap said the search company may have to "change the user experience" of downloading apps straight from online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the justification for the current classification," a company competition lead remarked.

The executive said "most" of Android users use third-party platforms or install applications straight from a creator's site, and asserted there is a far greater range of applications available for Android users compared to those on iOS products.

"There are now twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry from iOS in the UK," the spokesperson added.

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

Google argues this means it promotes competition.

But consumer groups said curbs on these firms' dominance in other countries "currently assist businesses to develop and providing consumers more options".

"The companies' control is now creating genuine problems by restricting choice for users and competition for companies," commented a policy expert.