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

This represents a significant change to Apple's well-known "walled garden" where applications can only be installed from the company's App Store.

But the UK competition watchdog has classified both the tech giants as having "strategic market status" - effectively saying they have significant control over mobile platforms.

Watchdog Findings

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

But the authority emphasized it did not "find or assume wrongdoing" from the firms.

"Mobile applications contributes 1.5% of the British economy and supports around four hundred thousand positions, which is why it's essential these markets work well for enterprises," stated a senior official from the CMA.

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

Based on recent analysis, nearly half of UK mobile owners own an iPhone - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

Apple's Reaction

The regulatory probe examined how dominant the companies' own apps are versus rivals - as well as their web applications and platform software.

It is unclear what changes 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 transition between iOS and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

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

This would mirror a similar ruling in the European Union, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm warned the UK could lose access to receiving updates - as has occurred in the European Union - which the organization attributes to strict rules.

For instance, some Apple Intelligence capabilities which have been launched in other regions are not available in the EU.

"Apple faces intense rivalry in every sector where we operate, and we strive continuously to create the finest offerings, services and user experience," the company said in a statement.

"Britain's implementation of European regulations would undermine that, leaving users with weaker privacy and security, slower availability to new features, and a divided, more complicated experience."

The Search Giant's Standpoint

Google device owners 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 "change the user experience" of installing applications directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for the current classification," a Google policy executive remarked.

The representative said "most" of Google device owners use third-party platforms or download apps straight from a creator's site, and asserted there is a much wider selection of applications offered for Google device owners compared to those on Apple devices.

"There are now twenty-four thousand Android phone models from 1,300 device makers globally, facing strong rivalry from iOS in the UK," the representative added.

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

The company contends this means it promotes market competition.

But consumer groups said restrictions on these companies' power in different nations "are already helping businesses to develop and providing customers more options".

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