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Apple could be required to permit rivals to run separate app stores on iPhones in the UK, after a decision from the competition regulator.

This represents a significant change to Apple's well-known "walled garden" where applications can only be downloaded from its own official marketplace.

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - effectively saying they have a lot of power over smartphone ecosystems.

Regulatory Findings

The CMA said the two companies "could be restricting progress and market rivalry".

But the authority emphasized it did not "find or assume wrongdoing" from the firms.

"The app economy contributes 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's essential these sectors work well for business," commented a top executive from the CMA.

Around 90-100% of British smartphones operate using the two tech companies' mobile platforms, creating what the regulator calls an "virtual monopoly".

According to current data, 48.5% of UK mobile owners use an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

Apple's Reaction

The regulatory probe examined how prominent Apple and Google's own apps are versus rivals - as well as their web applications and operating systems.

It is unclear what changes the regulator will look to request, but previously 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 companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple specifically may be compelled to allow alternative app stores on its products, and enable people to install apps directly from developer sites.

This would mirror comparable regulations in the EU, which previously imposed measures against the company for anti-competitive behaviour.

Apple warned the United Kingdom could lose access to receiving updates - as has occurred in the EU - which the company blames on heavy regulation.

For instance, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the EU.

"We faces intense rivalry in every sector where we do business, and we work tirelessly to create the finest offerings, solutions and customer interface," the organization said in a statement.

"The UK's adoption of EU-style rules would undermine that, resulting in consumers with reduced data protection and safety, slower availability to latest functions, and a divided, less seamless experience."

Google's Standpoint

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

The regulator's plan said Google may have to "change the user experience" of installing applications directly from websites, as well as "remove user frictions" when using alternative app stores.

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

The executive said "most" of Android users use third-party platforms or install applications straight from a developer's website, and claimed there is a far greater range of applications available for Google device owners versus those on Apple devices.

"There are now twenty-four thousand Android phone models from 1,300 device makers worldwide, facing intense competition from Apple's platform in the UK," the representative added.

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

Google argues this means it promotes competition.

But consumer groups said restrictions on these companies' power in different nations "are already helping enterprises to develop and giving customers more choice".

"The companies' control is now creating genuine problems by restricting choice for consumers and market rivalry for companies," stated a policy expert.