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The iPhone maker may have to permit competitors to run separate app stores on Apple devices across Britain, after a ruling from the market watchdog.

This represents a major shift to the company's infamous "walled garden" where apps can only be downloaded from the company's official marketplace.

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

Regulatory Assessment

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

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

"The app economy generates 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these sectors function properly for business," commented a senior official from the CMA.

Around 90-100% of UK mobile devices run on Apple or Google's operating systems, creating what the authority calls an "effective duopoly".

Based on current data, nearly half of UK mobile owners own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Response

The CMA's investigation examined how prominent the companies' own applications are compared with competitors - as well as their browsers and platform software.

It is unknown what modifications the authority will look to request, but earlier it published roadmaps outlining possible actions it could take.

These include mandating it to be easier for people to transition between iOS and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple specifically may be compelled to allow third-party marketplaces on its products, and enable people to download programs straight from developer sites.

This would follow a similar ruling in the EU, which previously took action against Apple for restrictive practices.

Apple cautioned the UK could lose access to receiving updates - as has occurred in the EU - which the company attributes to heavy regulation.

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

"Apple encounters intense rivalry in every market where we do business, and we strive continuously to create the best products, services and customer interface," the company said in a release.

"Britain's implementation of EU-style rules would weaken that, resulting in consumers with weaker privacy and security, slower availability to new features, and a divided, less seamless user journey."

Google's Position

Android users can currently use third-party app stores - though commentators say they are not as smooth as the company's official application marketplace.

The regulator's plan said Google may have to "modify the interface" of installing applications straight from online sources, as well as "remove user frictions" when using third-party platforms.

"We simply do not see the justification for the current classification," a Google policy executive remarked.

The representative said "the majority" of Google device owners use third-party platforms or install applications directly from a creator's site, and asserted there is a far greater range of applications offered for Google device owners compared to those on iOS products.

"Currently available are twenty-four thousand Google-compatible devices from 1,300 phone manufacturers worldwide, facing intense competition from iOS in the UK," the representative continued.

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

The company argues this means it opens up competition.

But consumer groups said curbs on these firms' dominance in different nations "currently assist businesses to develop and providing consumers more choice".

"Their dominance is now creating genuine problems by limiting options for consumers and market rivalry for businesses," commented a policy expert.