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Apple could be required to permit rivals to run separate app stores on iPhones across Britain, after a ruling from the competition regulator.

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

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 Findings

The CMA said the tech firms "could be restricting innovation and market rivalry".

But the authority emphasized it did not "determine or presume wrongdoing" from the firms.

"The app economy generates one and a half percent of the British economy and sustains around four hundred thousand positions, which is why it's essential these markets function properly for business," commented a top executive from the competition authority.

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

Based on recent analysis, 48.5% of British smartphone users own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

The Company's Response

The regulatory probe examined how prominent the companies' own apps are compared with competitors - as well as their web applications and operating systems.

It is unclear what changes the regulator will seek to implement, but previously it published roadmaps outlining possible actions it could take.

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

Apple particularly may be required to allow alternative app stores on its products, and let people to download programs straight from companies' websites.

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

The technology firm warned the UK could lose access to getting new features - as has occurred in the European Union - which the organization blames on strict rules.

For example, some Apple Intelligence features which have been rolled out in other regions are not available in the EU.

"Apple faces intense rivalry in every market where we operate, and we work tirelessly to create the best products, services and customer interface," the company said in a statement.

"The UK's adoption of EU-style rules would undermine that, leaving users with reduced data protection and safety, delayed access to latest functions, and a divided, less seamless user journey."

The Search Giant's Position

Google device owners can currently use alternative marketplaces - though commentators say they are not as smooth as Google's own application marketplace.

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

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

The executive said "most" of Google device owners use alternative app stores or install applications straight from a creator's site, and asserted there is a far greater range of apps available for Android users compared to those on Apple devices.

"Currently available are twenty-four thousand Android phone models from thirteen hundred phone manufacturers worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson added.

Android is an freely available software, which means creators can use and build on top of it for no cost.

The company contends this means it opens up competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping enterprises to develop and providing consumers more choice".

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