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The iPhone maker could be required to allow rivals to operate separate application platforms on Apple devices in the UK, after a decision from the competition regulator.

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

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Assessment

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

But the regulator emphasized it did not "determine or presume misconduct" 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 essential these markets work well for business," stated a senior official from the CMA.

Around ninety to one hundred percent of UK mobile devices run on Apple or Google's operating systems, creating what the authority calls an "effective duopoly".

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

The Company's Response

The CMA's investigation examined how prominent Apple and Google's own apps are versus rivals - as well as their browsers and platform software.

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

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

Apple specifically may be compelled to allow alternative app stores on its devices, and enable people to download programs directly from companies' websites.

This would follow a similar ruling in the EU, which previously imposed measures against the company for restrictive practices.

Apple cautioned the UK could face delays to getting new features - as has happened in the EU - which the company blames on strict rules.

For example, some AI capabilities which have been launched in other regions are not available in the EU.

"We encounters fierce competition in every sector where we operate, and we work tirelessly to create the finest offerings, services and customer interface," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, resulting in consumers with reduced data protection and safety, delayed access to new features, and a divided, more complicated experience."

Google's Position

Android users can currently use third-party app stores - 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 websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the justification for the current classification," a company policy executive stated.

The representative said "most" of Google device owners use alternative app stores or install applications directly from a developer's website, and asserted there is a far greater range of apps offered for Android users versus those on Apple devices.

"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from iOS in the UK," the representative added.

Google's platform is an freely available software, which means creators can utilize and develop on top of it for no cost.

Google argues this means it opens up market competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping businesses to innovate and giving consumers more options".

"Their dominance is now causing real harm by limiting options for consumers and market rivalry for companies," stated a policy expert.