The tech giant could be compelled to permit rival app stores within the United Kingdom.

Apple may have to allow competitors to operate separate app stores on iPhones in the UK, following a decision from the market watchdog.

This represents a major shift to Apple's well-known "walled garden" where apps can only be installed from its own App Store.

But the UK competition watchdog has designated both the tech giants as having "strategic market status" - indicating they have significant control over smartphone ecosystems.

Regulatory Assessment

The regulator said the two companies "may be limiting progress and market rivalry".

But the regulator clarified it did not "find or assume misconduct" from the firms.

"Mobile applications contributes one and a half percent of the British economy and sustains around 400,000 jobs, which is why it's essential these markets function properly for enterprises," commented a top executive from the competition authority.

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

According to recent analysis, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using Google's Android.

The Company's Reaction

The regulatory probe examined how dominant Apple and Google's own applications are compared with competitors - as well as their web applications and platform software.

It is unknown what changes the authority 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 firms to list applications "fairly and openly" in their marketplaces.

Apple specifically may be required to allow alternative app stores on its devices, and enable people to download programs directly from companies' websites.

This would mirror a similar ruling in the EU, which previously imposed measures against Apple for restrictive practices.

Apple cautioned the United Kingdom could lose access to receiving updates - as has occurred in the European Union - which the organization blames on heavy regulation.

For example, some AI capabilities which have been rolled out in other parts of the world are not accessible in the EU.

"We encounters intense rivalry in every sector where we operate, and we work tirelessly to create the best products, solutions and customer interface," the company said in a statement.

"Britain's implementation of EU-style rules would weaken that, leaving users with weaker privacy and security, delayed access to latest functions, and a divided, more complicated user journey."

Google's Standpoint

Android users can currently use third-party app stores - though commentators say they are not as smooth as Google's own Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of downloading apps straight from online sources, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the justification for the current classification," a company policy executive stated.

The representative said "the majority" of Android users use third-party platforms or install applications directly from a creator's site, and asserted there is a far greater range of applications offered for Google device owners versus those on Apple devices.

"There are now 24,000 Android phone models from thirteen hundred device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative continued.

Google's platform is an open-source operating system, which means developers can use and build on top of it for free.

Google contends this means it opens up market competition.

But consumer groups 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 companies," stated a consumer advocate.