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The iPhone maker may have to permit rivals to run their own application platforms on Apple devices in the UK, after a decision from the competition regulator.

This would be a significant change to Apple's infamous "closed system" where apps can only be installed from its own official marketplace.

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - indicating they have significant control over smartphone ecosystems.

Watchdog Findings

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

But the authority emphasized it did not "determine or presume wrongdoing" from the firms.

"Mobile applications generates 1.5% of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these sectors function properly for enterprises," commented a top executive from the CMA.

Approximately ninety to one hundred percent of British smartphones operate using Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

Based on current data, nearly half of British smartphone users own an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.

Apple's Reaction

The regulatory probe examined how dominant the companies' 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 guidelines outlining potential measures it could take.

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

Apple specifically may be required to allow third-party marketplaces on its products, and let people to install apps straight from companies' websites.

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

The technology firm cautioned the United Kingdom could lose access to receiving updates - as has happened in the EU - which the company blames on heavy regulation.

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

"We encounters intense rivalry in every market where we do business, and we work tirelessly to create the finest offerings, solutions and user experience," the organization said in a statement.

"Britain's implementation of EU-style rules would weaken that, resulting in consumers with reduced data protection and safety, delayed access to latest functions, and a fragmented, less seamless experience."

The Search Giant's Standpoint

Google device owners can currently use alternative marketplaces - though commentators say they are not as smooth as Google's own Play Store.

The CMA's roadmap said Google may have to "change the user experience" of installing applications straight from online sources, as well as "remove user frictions" when using third-party platforms.

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

The representative said "the majority" of Android users use alternative app stores or install applications directly from a developer's website, and asserted there is a much wider selection of applications offered for Android users versus those on Apple devices.

"Currently available are 24,000 Google-compatible devices from 1,300 device makers worldwide, facing intense competition from Apple's platform in the United Kingdom," the representative added.

Android is an freely available software, which means developers can use and build on top of it for no cost.

The company argues this means it promotes market competition.

But advocacy organizations said curbs on these firms' dominance in other countries "currently assist enterprises to develop and providing consumers more choice".

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