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The iPhone maker could be required to allow rivals to run separate app stores on Apple devices in the UK, following a ruling from the market watchdog.

This would be a major shift to the company'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 smartphone ecosystems.

Watchdog Findings

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

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

"Mobile applications generates 1.5% of the British economy and supports around four hundred thousand positions, which is why it's crucial these sectors work well for business," commented a senior official from the competition authority.

Approximately 90-100% of UK mobile devices operate using Apple or Google's mobile platforms, creating what the authority calls an "effective duopoly".

Based on current data, 48.5% of British smartphone users own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

The Company's Reaction

The CMA's investigation focused on how dominant Apple and Google's own applications are compared with competitors - as well as their browsers and operating systems.

It is unknown what modifications the regulator will look to request, but previously it published roadmaps outlining possible actions it could take.

These include requiring it to be more straightforward for people to switch between Apple and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their marketplaces.

Apple specifically may be required to allow third-party marketplaces on its products, and enable people to download programs straight from companies' websites.

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

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

For instance, some Apple Intelligence features 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 do business, and we work tirelessly to create the best products, services and user experience," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with reduced data protection and security, slower availability to new features, and a divided, less seamless user journey."

The Search Giant's Standpoint

Google device owners can presently use third-party app stores - though critics say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google may have to "change the user experience" of downloading apps directly from online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the justification for the current classification," a company policy executive stated.

The representative said "most" of Android users use alternative app stores or download apps straight from a developer's website, and claimed there is a much wider selection of applications offered for Android users compared to those on iOS products.

"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from iOS in the United Kingdom," the spokesperson added.

Android is an freely available software, which means creators can utilize and develop 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 develop and providing consumers more choice".

"Their dominance is now creating genuine problems by limiting options for consumers and competition for companies," commented a policy expert.