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The iPhone maker could be required to permit rivals to operate separate app stores on iPhones across Britain, after a decision from the competition regulator.

This would be a significant change to the company's well-known "walled garden" where apps can only be downloaded from its own App Store.

But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Regulatory Findings

The regulator said the tech firms "may be limiting progress and competition".

But the authority clarified it did not "find or assume wrongdoing" from the firms.

"Mobile applications generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," stated a top executive from the CMA.

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

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

Apple's Response

The regulatory probe examined how prominent Apple and Google's own applications are versus competitors - as well as their web applications and platform software.

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

These comprise requiring it to be easier for people to switch between Apple and Android devices, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company specifically may be compelled to permit third-party marketplaces on its products, and let people to install apps directly from developer sites.

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

The technology firm warned the UK could face delays to getting new features - as has occurred in the EU - which the company attributes to strict rules.

For example, some Apple Intelligence features which have been rolled out in other regions are not available in the European market.

"We faces intense rivalry in every market where we operate, and we strive continuously to create the finest offerings, solutions and customer interface," the company said in a statement.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a fragmented, more complicated user journey."

The Search Giant's Position

Google device owners can currently use third-party app stores - though commentators say they are not as user-friendly as the company's official Play Store.

The regulator's plan said Google may have to "modify the interface" of installing applications directly from online sources, as well as "remove user frictions" when using third-party platforms.

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

The executive said "the majority" of Google device owners use alternative app stores or install applications straight from a developer's website, and asserted there is a much wider selection of apps available for Google device owners compared to those on iOS products.

"There are now 24,000 Google-compatible devices from thirteen hundred device makers globally, facing intense competition from Apple's platform in the UK," the representative continued.

Android is an open-source operating system, which means creators can use and build on top of it for free.

The company argues this means it promotes market competition.

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

"The companies' control is now causing real harm by limiting options for users and competition for businesses," commented a consumer advocate.