The tech giant could be compelled to allow competing application marketplaces within the United Kingdom.

Apple may have to permit competitors to run separate app stores on iPhones in the UK, following a decision from the competition regulator.

This would be a major shift to the company's well-known "walled garden" where apps can only be downloaded from its own official marketplace.

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

Watchdog Assessment

The CMA said the tech firms "may be limiting innovation and market rivalry".

But the authority clarified it did not "find or assume misconduct" from the companies.

"The app economy 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," commented a senior official from the CMA.

Approximately 90-100% of UK mobile devices operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

Based on current data, 48.5% of British smartphone users own an iPhone - which runs the iOS operating system - with the vast majority of the remaining users using Google's Android.

Apple's Reaction

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

It is unknown what modifications the authority will look to request, but earlier it published guidelines detailing possible actions it could take.

These include mandating it to be more straightforward for people to switch between iOS and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be required to permit alternative app stores on its devices, and let people to download programs straight from companies' websites.

This would mirror a similar ruling in the European Union, which previously took action against Apple for anti-competitive behaviour.

The technology firm cautioned the UK could lose access to getting new features - as has occurred in the European Union - which the company blames on heavy regulation.

For instance, some AI capabilities which have been rolled out in other regions are not available in the European market.

"Apple faces fierce competition in every market where we do business, and we strive continuously to create the finest offerings, services and customer interface," the organization said in a statement.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a divided, more complicated experience."

Google's Standpoint

Google device owners can presently use third-party app stores - though commentators 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 installing applications directly from websites, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the rationale for today's designation decision," a company competition lead stated.

The executive said "most" of Google device owners use alternative app stores or download apps directly from a creator's site, and claimed there is a far greater range of apps available for Android users compared to those on iOS products.

"Currently available are 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from Apple's platform in the UK," the representative added.

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

The company contends this means it promotes competition.

But advocacy organizations said restrictions on these companies' power in other countries "are already helping businesses to innovate and providing consumers more options".

"Their dominance is now creating genuine problems by restricting choice for consumers and market rivalry for businesses," commented a consumer advocate.