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The iPhone maker could be required to allow rivals to operate their own app stores on Apple devices in the UK, following a decision from the market watchdog.

This would be a major shift to Apple's infamous "closed system" where apps can only be downloaded from its own official marketplace.

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

Watchdog Assessment

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

But the regulator clarified it did not "determine or presume misconduct" from the firms.

"Mobile applications generates 1.5% of the British economy and sustains around 400,000 jobs, which is why it's crucial these sectors function properly for business," stated a senior official from the competition authority.

Approximately ninety to one hundred percent of British smartphones run on Apple or Google's mobile platforms, creating what the authority calls an "effective duopoly".

According to recent analysis, 48.5% of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest 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 operating systems.

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

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

The Cupertino company specifically may be required to allow alternative app stores on its products, and enable people to install apps straight from developer sites.

This would follow comparable regulations in the EU, which previously took action against the company for anti-competitive behaviour.

Apple cautioned the United Kingdom could face delays to getting new features - as has occurred in the EU - which the organization attributes to strict rules.

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

"We faces intense rivalry in every sector where we operate, and we strive continuously to create the finest offerings, services and user experience," the organization said in a statement.

"The UK's adoption of European regulations would weaken that, resulting in consumers with reduced data protection and safety, delayed access to latest functions, and a fragmented, more complicated user journey."

Google's Position

Google device owners can currently use third-party app stores - though critics say they are not as user-friendly as Google's own Play Store.

The CMA's roadmap said Google may have to "modify the interface" of downloading apps directly from websites, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the justification for today's designation decision," a company policy executive stated.

The representative said "most" of Google device owners use third-party platforms or download apps straight from a creator's site, and claimed there is a much wider selection of applications offered for Google device owners compared to those on iOS products.

"Currently available are 24,000 Google-compatible devices from thirteen hundred device makers worldwide, facing intense competition from iOS in the UK," the spokesperson continued.

Android is an freely available software, which means developers can utilize and develop on top of it for free.

The company argues this means it opens up competition.

But consumer groups said restrictions on these companies' power in different nations "currently assist businesses to innovate and providing customers more options".

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