The tech giant could be compelled to permit competing app stores in UK.

The iPhone maker could be required to permit rivals to run their own application platforms on Apple devices across Britain, after a ruling from the market watchdog.

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

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

Watchdog Findings

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

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

"The app economy generates 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these markets work well for enterprises," commented a top executive from the CMA.

Around 90-100% of British smartphones operate using the two tech companies' operating systems, creating what the regulator calls an "effective duopoly".

According to recent analysis, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the vast majority of the rest using the Android OS.

Apple's Response

The regulatory probe examined how dominant Apple and Google's own applications are compared with competitors - as well as their browsers and operating systems.

It is unclear what changes the regulator will look to request, but previously it published roadmaps outlining potential measures 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 app stores.

The Cupertino company particularly may be required to permit third-party marketplaces on its devices, and let people to install apps straight from companies' websites.

This would mirror a similar ruling in the EU, which previously took action against the company for restrictive practices.

Apple cautioned the United Kingdom could lose access to receiving updates - as has occurred in the European Union - which the company blames on strict rules.

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

"Apple faces intense rivalry in every sector where we do business, and we strive continuously to create the best products, services and user experience," the company said in a statement.

"The UK's adoption of European regulations would weaken that, leaving users with reduced data protection and safety, delayed access to new features, and a divided, more complicated experience."

Google's Standpoint

Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.

The regulator's plan said the search company may have to "modify the interface" of downloading apps directly from online sources, as well as "eliminate barriers" when using alternative app stores.

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

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

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing intense competition from iOS in the United Kingdom," the representative added.

Android is an open-source operating system, which means creators can use and build on top of it for free.

Google argues this means it promotes competition.

But advocacy organizations said restrictions on these companies' power in different nations "currently assist enterprises to develop and providing consumers more options".

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