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The iPhone maker could be required to permit rivals to run their own app stores on iPhones across Britain, after a ruling from the market watchdog.

This would be a major shift to Apple's well-known "walled garden" where applications can only be downloaded from the company's App Store.

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

Regulatory Assessment

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

But the authority clarified it did not "determine or presume wrongdoing" 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 sectors function properly for business," stated a top executive from the competition authority.

Around ninety to one hundred percent of UK mobile devices run on the two tech companies' mobile platforms, creating what the regulator calls an "virtual monopoly".

According to recent analysis, 48.5% of UK mobile owners own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

The Company's Reaction

The regulatory probe examined how prominent the companies' own applications are compared with competitors - as well as their browsers and operating systems.

It is unknown what modifications the authority will look to request, but previously it published roadmaps detailing potential measures it could take.

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

Apple particularly may be required to permit alternative app stores on its devices, and let people to download programs straight from developer sites.

This would mirror comparable regulations in the EU, which previously took action against the company for restrictive practices.

The technology firm cautioned the United Kingdom could lose access to receiving updates - as has happened in the European Union - which the company attributes to strict rules.

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

"We faces fierce competition in every sector where we operate, and we work tirelessly to create the best products, services and customer interface," the company said in a release.

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

The Search Giant's Position

Google device owners can presently use third-party app stores - though critics say they are not as smooth as the company's official Play Store.

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

"There appears to be no the justification for the current classification," a company policy executive stated.

The representative said "most" of Android users use alternative app stores or download apps straight from a developer's website, and claimed there is a much wider selection of apps available for Android users versus those on Apple devices.

"Currently available are 24,000 Android phone models from thirteen hundred device makers globally, facing intense competition from Apple's platform in the UK," the spokesperson added.

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

Google argues this means it promotes market competition.

But advocacy organizations said restrictions on these companies' power in different nations "currently assist businesses to innovate and providing consumers more choice".

"The companies' control is now causing real harm by limiting options for users and competition for companies," stated a policy expert.