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

This would be a significant change to Apple's infamous "closed system" where applications can only be installed from the company's App Store.

But the Competition and Markets Authority has designated both Apple and Google as having "dominant market position" - indicating they have a lot of power over smartphone ecosystems.

Watchdog Findings

The CMA said the two companies "may be limiting 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 sustains around 400,000 jobs, which is why it's essential these markets function properly for enterprises," commented a senior official from the competition authority.

Approximately 90-100% of UK mobile devices run on the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

According to current data, nearly half of British smartphone users own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Response

The regulatory probe focused on how dominant Apple and Google's own apps are compared with competitors - as well as their browsers and platform software.

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

These include requiring it to be easier for people to transition between iOS and Android devices, and for both companies to list applications "in a fair, objective and transparent manner" in their app stores.

Apple particularly may be required to allow third-party marketplaces on its devices, and enable people to install apps directly from developer sites.

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

Apple cautioned the United Kingdom could face delays to getting new features - as has occurred in the EU - which the company blames on heavy regulation.

For instance, some AI features which have been launched in other regions are not accessible in the EU.

"We faces fierce competition in every market where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the company said in a release.

"The UK's adoption of EU-style rules would weaken that, leaving users with reduced data protection and security, slower availability to new features, and a divided, less seamless experience."

Google's Position

Google device owners can presently use alternative marketplaces - though commentators say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google may have to "modify the interface" of downloading apps straight from online sources, as well as "remove user frictions" when using alternative app stores.

"There appears to be no 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 directly from a creator's site, and claimed there is a far greater range of apps available for Google device owners versus those on Apple devices.

"Currently available are twenty-four thousand Google-compatible devices from thirteen hundred device makers worldwide, facing intense competition from Apple's platform in the United Kingdom," the representative continued.

Android is an freely available software, which means developers can utilize and develop on top of it for free.

Google argues this means it promotes market competition.

But advocacy organizations said curbs on these firms' dominance in different nations "are already helping businesses to develop and providing customers more options".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for companies," commented a consumer advocate.