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The iPhone maker could be required to permit competitors to operate their own app stores on iPhones across Britain, following a decision from the competition regulator.

This would be a significant change to the company's infamous "walled garden" where applications can only be installed from its own App Store.

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

Regulatory Findings

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

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

"Mobile applications contributes one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," commented a top executive from the CMA.

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

According to current data, nearly half of British smartphone users use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

Apple's Reaction

The CMA's investigation examined how prominent the companies' own apps are compared with competitors - as well as their browsers and operating systems.

It is unknown what changes the regulator will look to request, but previously it published guidelines detailing possible actions it could take.

These comprise mandating it to be more straightforward for people to transition between iOS and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

The Cupertino company particularly may be required to allow alternative app stores on its devices, and let people to install apps straight from companies' websites.

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

Apple cautioned the UK could lose access to receiving updates - as has occurred in the European Union - which the organization attributes to strict rules.

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

"We encounters fierce competition in every market where we operate, and we work tirelessly to create the best products, services and user experience," the company said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with weaker privacy and safety, slower availability to latest functions, and a fragmented, less seamless user journey."

Google's Standpoint

Android users can presently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

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

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

The executive said "the majority" of Android users use alternative app stores or install applications directly from a developer's website, and claimed there is a much wider selection of applications available for Android users versus those on iOS products.

"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson continued.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for no cost.

The company contends this means it promotes market competition.

But advocacy organizations said curbs on these companies' power in other countries "currently assist businesses to innovate and providing consumers more choice".

"Their dominance is now causing real harm by restricting choice for users and market rivalry for businesses," commented a policy expert.