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The iPhone maker may have to permit rivals to operate their own app stores on Apple devices in the UK, following a decision from the competition regulator.

This would be a major shift to the company's infamous "closed system" where applications can only be installed from its own App Store.

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - indicating they have significant control over smartphone ecosystems.

Regulatory Findings

The regulator said the tech firms "could be restricting innovation and market rivalry".

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

"Mobile applications generates one and a half percent of the British economy and sustains around four hundred thousand positions, which is why it's crucial these markets function properly for business," stated a top executive from the competition authority.

Around 90-100% of British smartphones operate using Apple or Google's operating systems, creating what the authority calls an "effective duopoly".

According to recent analysis, nearly half of British smartphone users own an iPhone - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

Apple's Reaction

The regulatory probe examined how dominant the companies' own applications are compared with rivals - as well as their web applications and operating systems.

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

These comprise requiring it to be easier for people to transition between Apple and Android devices, and for both firms to rank apps "fairly and openly" in their marketplaces.

Apple particularly may be required to permit alternative app stores on its products, and let people to install apps straight from developer sites.

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

The technology firm cautioned the United Kingdom could lose access to getting new features - as has happened in the European Union - which the company blames on strict rules.

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

"Apple encounters intense rivalry in every sector where we do business, and we work tirelessly to create the finest offerings, services and customer interface," the company said in a statement.

"The UK's adoption of European regulations would weaken that, resulting in consumers with reduced data protection and security, slower availability to new features, and a divided, less seamless user journey."

The Search Giant's Standpoint

Android users can currently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

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

"There appears to be no the justification for today's designation decision," a company policy executive stated.

The representative said "the majority" of Google device owners use third-party platforms or download apps directly from a developer's website, and asserted there is a much wider selection of applications available for Android users versus those on Apple devices.

"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers worldwide, facing strong rivalry from iOS in the United Kingdom," the spokesperson continued.

Google's platform is an freely available software, which means creators can use and build on top of it for free.

Google contends this means it promotes market competition.

But consumer groups said curbs on these companies' power in other countries "are already helping businesses to innovate and providing customers more options".

"Their dominance is now creating genuine problems by limiting options for users and market rivalry for companies," stated a policy expert.