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The iPhone maker may have to allow competitors to run their own app stores on Apple devices in the UK, following a decision from the market watchdog.

This would be a major shift to the company's infamous "closed system" where apps can only be installed from its own App Store.

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

Watchdog Assessment

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

But the regulator emphasized it did not "determine or presume wrongdoing" from the companies.

"Mobile applications contributes 1.5% of the British economy and supports around four hundred thousand positions, which is why it's essential these markets work well for enterprises," stated a senior official from the CMA.

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

Based on current data, 48.5% of British smartphone users own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Reaction

The regulatory probe focused on how dominant Apple and Google's own apps are versus competitors - as well as their browsers and platform software.

It is unclear what modifications the regulator will look to request, but previously it published guidelines outlining possible actions it could take.

These include requiring it to be easier for people to switch between iOS and Android phones, and for both firms to rank apps "fairly and openly" in their app stores.

Apple particularly may be compelled to allow alternative app stores on its devices, and let people to install apps straight from developer sites.

This would mirror comparable regulations in the European Union, which previously took action against Apple for restrictive practices.

Apple cautioned the UK could face delays to getting new features - as has occurred in the EU - which the organization blames on strict rules.

For instance, some AI features which have been launched in other regions are not available in the EU.

"Apple faces intense rivalry in every market where we do business, and we work tirelessly to create the best products, services and user experience," the organization said in a statement.

"The UK's adoption of European regulations would weaken that, leaving users with reduced data protection and security, slower availability to new features, and a fragmented, less seamless user journey."

The Search Giant's Position

Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as Google's own 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 alternative app stores.

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

The executive said "most" of Android users use third-party platforms or download apps straight from a creator's site, and claimed there is a much wider selection of apps available for Android users versus those on Apple devices.

"There are now 24,000 Google-compatible devices from 1,300 device makers globally, facing intense competition from Apple's platform in the United Kingdom," the representative added.

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

Google argues this means it promotes competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping businesses to develop and providing customers more choice".

"Their dominance is now causing real harm by limiting options for users and competition for companies," commented a consumer advocate.