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The iPhone maker could be required to permit competitors to run their own app stores on Apple devices in the UK, after a decision from the market watchdog.

This represents a significant change to Apple's infamous "closed system" where applications can only be downloaded from its own official marketplace.

But the UK competition watchdog has designated both the tech giants as having "strategic market status" - indicating they have a lot of power over smartphone ecosystems.

Watchdog Findings

The regulator said the two companies "could be restricting progress and competition".

But the regulator clarified it did not "determine or presume wrongdoing" from the companies.

"Mobile applications generates 1.5% of the UK's GDP and supports around 400,000 jobs, which is why it's essential these markets work well for enterprises," commented a senior official from the competition authority.

Around ninety to one hundred percent of British smartphones operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

According to current data, 48.5% of British smartphone users own an Apple device - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

The Company's Response

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

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

These include mandating it to be more straightforward for people to switch between iOS and Android devices, and for both companies to list applications "fairly and openly" in their marketplaces.

The Cupertino company specifically may be compelled to allow third-party marketplaces on its products, and enable people to download programs straight from developer sites.

This would follow comparable regulations in the EU, which previously imposed measures against Apple for restrictive practices.

Apple cautioned 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 accessible in the EU.

"Apple encounters fierce competition in every market where we operate, and we work tirelessly to create the best products, services and user experience," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with weaker privacy and safety, delayed access to latest functions, and a fragmented, more complicated experience."

Google's Standpoint

Android users can currently use alternative marketplaces - though critics say they are not as user-friendly as the company's official application marketplace.

The CMA's roadmap said Google may have to "modify the interface" of installing applications straight from websites, as well as "remove user frictions" when using third-party platforms.

"We simply do not see the rationale for the current classification," a company competition lead remarked.

The executive said "most" of Google device owners use third-party platforms or install applications straight from a developer's website, and claimed there is a much wider selection of apps offered for Android users versus those on iOS products.

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from iOS in the UK," the representative added.

Android is an open-source operating system, which means creators can utilize and develop on top of it for no cost.

Google argues this means it opens up competition.

But consumer groups said restrictions on these companies' power in different nations "are already helping enterprises to develop and giving consumers more choice".

"Their dominance is now causing real harm by restricting choice for users and competition for businesses," commented a policy expert.