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The iPhone maker could be required to allow competitors to operate separate app stores on Apple devices in the UK, following a ruling from the competition regulator.

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

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - effectively saying they have a lot of power over smartphone ecosystems.

Regulatory Findings

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

But the regulator clarified it did not "find or assume wrongdoing" from the companies.

"The app economy contributes one and a half percent of the British economy and sustains around four hundred thousand positions, which is why it's crucial these markets function properly for business," stated a top executive from the CMA.

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

Based on recent analysis, nearly half of UK mobile owners own an iPhone - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

Apple's Response

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

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

These comprise requiring it to be easier for people to transition between iOS and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple specifically may be compelled to permit alternative app stores on its products, and let people to install apps directly from companies' websites.

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

Apple warned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the company blames on heavy regulation.

For instance, some AI capabilities which have been rolled out in other regions are not accessible in the EU.

"Apple encounters intense rivalry in every sector where we operate, and we work tirelessly to create the finest offerings, services and user experience," the organization said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with reduced data protection and security, delayed access to latest functions, and a fragmented, less seamless experience."

The Search Giant's Position

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

The CMA's roadmap said the search company may have to "change the user experience" of installing applications 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 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 far greater range of apps offered for Google device owners compared to those on iOS products.

"There are now twenty-four thousand Android phone models from thirteen hundred 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 developers can utilize and develop on top of it for free.

The company contends this means it promotes market competition.

But consumer groups said restrictions on these firms' dominance in other countries "are already helping enterprises to develop and providing customers more choice".

"Their dominance is now causing real harm by restricting choice for consumers and market rivalry for businesses," stated a policy expert.