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

This represents a significant change to Apple's infamous "closed system" where apps can only be installed from its own 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 Findings

The regulator said the tech firms "could be restricting innovation and competition".

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

"The app economy generates 1.5% of the British economy and supports around four hundred thousand positions, which is why it's essential these markets function properly for enterprises," stated a senior official from the CMA.

Around 90-100% of UK mobile devices operate using the two tech companies' operating systems, creating what the regulator calls an "virtual monopoly".

Based on current data, 48.5% of British smartphone users use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the remaining users using Google's Android.

Apple's Response

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

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

These include mandating it to be more straightforward for people to switch between iOS and Android devices, and for both companies to list applications "fairly and openly" in their marketplaces.

The Cupertino company specifically may be required to allow third-party marketplaces on its products, and let people to download programs directly from companies' websites.

This would mirror a similar ruling in the EU, which previously took action against Apple for anti-competitive behaviour.

The technology firm cautioned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the organization attributes to heavy regulation.

For instance, some AI features which have been launched in other regions are not available in the EU.

"We encounters intense rivalry in every sector where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the company said in a release.

"Britain's implementation of European regulations would undermine that, resulting in consumers with weaker privacy and security, slower availability to new features, and a fragmented, more complicated user journey."

The Search Giant's Position

Google device owners can currently use alternative marketplaces - though commentators say they are not as user-friendly as the company's official application marketplace.

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

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

The representative said "most" of Android users use third-party platforms or install applications directly from a creator's site, and asserted there is a much wider selection of applications available for Android users versus those on Apple devices.

"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers globally, facing intense competition from iOS in the United Kingdom," the representative added.

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

The company argues this means it opens up market competition.

But advocacy organizations said curbs on these firms' dominance in other countries "are already helping enterprises to innovate and giving customers more choice".

"Their dominance is now causing real harm by limiting options for consumers and market rivalry for businesses," commented a policy expert.