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The iPhone maker could be required to allow competitors to run separate app stores on Apple devices in the UK, following a decision from the competition regulator.

This represents a significant change to the company's infamous "walled garden" where applications can only be installed from the company's official marketplace.

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

Regulatory Findings

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

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

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

Approximately 90-100% of British smartphones operate using Apple or Google's operating systems, creating what the regulator calls an "effective duopoly".

According to recent analysis, nearly half of British smartphone users use an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using Google's Android.

The Company's Reaction

The CMA's investigation focused on how prominent the companies' own applications 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 detailing possible actions it could take.

These comprise requiring it to be more straightforward for people to switch between iOS and Android phones, and for both companies to list applications "fairly and openly" in their app stores.

Apple specifically may be required to allow alternative app stores on its devices, and enable people to download programs directly from developer sites.

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

Apple warned the United Kingdom could lose access to getting new features - as has occurred in the EU - which the organization blames on strict rules.

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

"We faces fierce competition in every sector where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the company said in a statement.

"Britain's implementation of European regulations would undermine that, leaving users with reduced data protection and security, slower availability to new features, and a divided, less seamless experience."

The Search Giant's Position

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

The CMA's roadmap said the search company may have to "modify the interface" of installing applications directly from websites, as well as "eliminate barriers" when using third-party platforms.

"We simply do not see the rationale for today's designation decision," a company competition lead stated.

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

"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from iOS in the UK," the spokesperson continued.

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

Google contends this means it opens up market competition.

But consumer groups said restrictions on these companies' power in other countries "currently assist businesses to innovate and giving customers more options".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for businesses," commented a consumer advocate.