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The iPhone maker could be required to permit competitors to run their own app stores on iPhones in the UK, after a decision from the competition regulator.

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

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

Regulatory Assessment

The regulator said the two companies "could be restricting progress and competition".

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

"Mobile applications contributes 1.5% of the British economy and sustains around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," stated a senior official from the competition authority.

Approximately 90-100% of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

According to recent analysis, 48.5% of British smartphone users use an Apple device - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

The Company's Response

The CMA's investigation focused on how dominant Apple and Google's own applications are compared with competitors - as well as their browsers and platform software.

It is unknown what modifications the regulator will seek to implement, but earlier it published guidelines outlining possible actions it could take.

These include requiring 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 specifically may be required to permit third-party marketplaces on its devices, and enable people to install apps straight from developer sites.

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

Apple cautioned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the company blames on heavy regulation.

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

"We encounters intense rivalry in every sector where we operate, and we work tirelessly to create the finest offerings, solutions and user experience," the company said in a release.

"Britain's implementation of European regulations would weaken that, leaving users with weaker privacy and security, slower availability to latest functions, and a divided, more complicated user journey."

Google's Position

Google device owners can presently use alternative marketplaces - though critics say they are not as user-friendly as Google's own application marketplace.

The regulator's plan said the search company may have to "modify the interface" of downloading apps directly from online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the rationale for the current classification," a Google competition lead stated.

The representative said "the majority" of Google device owners use third-party platforms or download apps straight from a developer's website, and asserted there is a much wider selection of applications offered for Android users compared to those on iOS products.

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

Google's platform is an freely available software, which means developers can utilize and develop on top of it for no cost.

The company argues this means it opens up market competition.

But consumer groups said curbs on these firms' dominance in other countries "currently assist businesses to innovate and giving consumers more choice".

"Their dominance is now creating genuine problems by limiting options for consumers and competition for companies," commented a consumer advocate.