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

This represents a major shift to Apple's well-known "closed system" where apps can only be downloaded from the company's App Store.

But the UK competition watchdog has designated both the tech giants as having "dominant market position" - indicating they have significant control over mobile platforms.

Regulatory Assessment

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

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

"The app economy contributes 1.5% of the British economy and supports around 400,000 jobs, which is why it's crucial these sectors work well for enterprises," commented a senior official from the CMA.

Approximately 90-100% of UK mobile devices run on Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners use an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using Google's Android.

The Company's Reaction

The regulatory probe examined how prominent Apple and Google's own applications are compared with competitors - as well as their browsers and operating systems.

It is unclear what modifications the authority will seek to implement, but earlier it published roadmaps detailing possible actions it could take.

These comprise requiring it to be more straightforward for people to switch between iOS and Android devices, and for both companies to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be required to allow alternative app stores on its products, and let people to download programs directly from developer sites.

This would follow comparable regulations in the European Union, which previously took action against the company for restrictive practices.

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

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

"Apple encounters fierce competition in every market where we operate, and we work tirelessly to create the best products, solutions and customer interface," the organization said in a statement.

"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 alternative marketplaces - though critics 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 installing applications directly from websites, as well as "eliminate barriers" when using third-party platforms.

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

The representative said "most" of Android users use alternative app stores or download apps directly from a creator's site, and asserted there is a much wider selection of apps available for Google device owners versus those on Apple devices.

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing intense competition from Apple's platform 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 free.

Google contends this means it opens up competition.

But consumer groups said restrictions on these companies' power in other countries "are already helping enterprises to develop and providing consumers more options".

"Their dominance is now causing real harm by limiting options for consumers and competition for companies," commented a consumer advocate.