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The iPhone maker may have to permit competitors to operate separate app stores on Apple devices in the UK, following a decision from the market watchdog.

This would be a major shift to Apple's well-known "closed system" where applications can only be installed from its own official marketplace.

But the Competition and Markets Authority has classified both the tech giants as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Watchdog Assessment

The regulator said the two companies "could be restricting innovation and market rivalry".

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

"The app economy contributes one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," commented a top executive from the competition authority.

Approximately ninety to one hundred percent of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, 48.5% of British smartphone users own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.

Apple's Response

The CMA's investigation focused on how prominent the companies' own applications are compared with rivals - as well as their web applications and operating systems.

It is unclear what changes the authority will look to request, but previously it published roadmaps outlining possible actions it could take.

These include mandating it to be easier for people to transition between Apple and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple particularly may be required to allow alternative app stores on its products, and let people to download programs directly from companies' websites.

This would mirror comparable regulations in the EU, which previously imposed measures against Apple for anti-competitive behaviour.

The technology firm warned the United Kingdom could lose access to getting new features - as has happened in the EU - which the organization blames on heavy regulation.

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

"We faces fierce competition in every market where we do business, and we strive continuously to create the best products, solutions and user experience," the organization said in a statement.

"Britain's implementation of EU-style rules would weaken that, leaving users with weaker privacy and safety, delayed access to new features, and a divided, less seamless user journey."

Google's Position

Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of downloading apps 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 company policy executive remarked.

The executive said "the majority" of Android users use third-party platforms 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 Google-compatible devices from thirteen hundred device makers globally, facing intense competition from Apple's platform in the United Kingdom," the spokesperson continued.

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

The company argues this means it promotes competition.

But advocacy organizations said restrictions on these firms' dominance in other countries "currently assist businesses to innovate and providing consumers more choice".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for businesses," stated a policy expert.