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The iPhone maker could be required to allow competitors to run their own app stores on iPhones in the UK, after a decision from the market watchdog.

This would be a major shift to Apple's infamous "closed system" where apps can only be installed from the company's App Store.

But the UK competition watchdog has designated both the tech giants as having "strategic market status" - effectively saying they have significant control over mobile platforms.

Regulatory Findings

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

But the authority emphasized it did not "find or assume misconduct" from the companies.

"Mobile applications generates one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's crucial these markets work well for enterprises," stated a senior official from the competition authority.

Around 90-100% of UK mobile devices run on the two tech companies' mobile platforms, creating what the regulator calls an "virtual monopoly".

Based on current data, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

The Company's Reaction

The regulatory probe examined how dominant the companies' own apps are compared with rivals - as well as their web applications and operating systems.

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

These include mandating it to be easier for people to transition between iOS and Android devices, and for both companies to rank apps "fairly and openly" in their marketplaces.

The Cupertino company specifically may be compelled to allow alternative app stores on its products, and let people to download programs directly from developer sites.

This would follow a similar ruling in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.

Apple cautioned the UK could face delays to getting new features - as has occurred in the EU - which the organization attributes to strict rules.

For instance, some Apple Intelligence capabilities which have been rolled out in other regions are not available in the EU.

"Apple encounters intense rivalry in every sector where we do business, and we work tirelessly to create the best products, services and customer interface," the company said in a release.

"The UK's adoption of EU-style rules would weaken that, leaving users with weaker privacy and safety, delayed access to new features, and a divided, more complicated user journey."

Google's Standpoint

Android users can currently use third-party app stores - though commentators say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google may have to "modify the interface" of installing applications straight from websites, 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 representative said "most" of Google device owners use alternative app stores or download apps directly from a creator's site, and claimed there is a much wider selection of apps available for Google device owners compared to those on iOS products.

"Currently available are twenty-four thousand Google-compatible devices from thirteen hundred phone manufacturers worldwide, facing intense competition from Apple's platform in the UK," the spokesperson added.

Google's platform is an freely available software, which means developers can use and build on top of it for no cost.

The company contends this means it opens up competition.

But advocacy organizations said restrictions on these firms' dominance in other countries "are already helping enterprises to develop and providing consumers more choice".

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