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The iPhone maker may have to permit rivals to operate their own application platforms on iPhones in the UK, following a decision from the market watchdog.

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

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Regulatory Findings

The CMA said the two companies "may be limiting innovation and competition".

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

"Mobile applications contributes 1.5% of the UK's GDP and supports around 400,000 jobs, which is why it's crucial these markets work well for enterprises," stated a senior official from the competition authority.

Around 90-100% of British smartphones run on Apple or Google's operating systems, creating what the regulator calls an "effective duopoly".

Based on current data, nearly half of British smartphone users own an iPhone - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

The Company's Reaction

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

It is unclear what modifications the regulator will look to request, but previously it published guidelines outlining potential measures it could take.

These include requiring it to be easier for people to transition between iOS and Android phones, and for both companies to rank apps "fairly and openly" in their app stores.

The Cupertino company specifically may be required 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 EU, which previously took action against Apple for restrictive practices.

Apple warned the UK could face delays to getting new features - as has occurred in the European Union - which the company blames on strict rules.

For instance, some AI features which have been launched in other regions are not available in the European market.

"Apple encounters intense rivalry in every sector where we operate, 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, resulting in consumers with weaker privacy and safety, delayed access to latest functions, and a fragmented, more complicated user journey."

The Search Giant's Standpoint

Google device owners can presently use alternative marketplaces - though critics say they are not as smooth as the company's official Play Store.

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

"There appears to be no the justification for the current classification," a Google policy executive stated.

The representative said "the majority" of Google device owners use alternative app stores or install applications straight from a creator's site, and asserted there is a much wider selection of apps available for Google device owners versus those on Apple devices.

"Currently available are twenty-four thousand Google-compatible devices from thirteen hundred device makers globally, facing intense competition from Apple's platform in the UK," the representative added.

Google's platform is an open-source operating system, which means creators 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 different nations "currently assist businesses to develop and providing customers more options".

"The companies' control is now causing real harm by restricting choice for users and market rivalry for companies," stated a consumer advocate.