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The iPhone maker may have to permit rivals to run their own application platforms on Apple devices in the UK, after a decision from the market watchdog.

This would be a significant change to the company's well-known "closed system" where applications can only be installed from its own App Store.

But the Competition and Markets Authority has classified both Apple and Google as having "dominant market position" - indicating they have significant control over mobile platforms.

Regulatory Findings

The CMA said the tech firms "may be limiting innovation and competition".

But the authority emphasized it did not "determine or presume misconduct" from the firms.

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

Approximately 90-100% of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

According to current data, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the vast majority of the rest using the Android OS.

The Company's Reaction

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

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

These include requiring it to be more straightforward for people to switch between iOS and Android phones, and for both companies to rank apps "fairly and openly" in their marketplaces.

Apple particularly may be required to permit alternative app stores on its devices, and let people to install apps straight from companies' websites.

This would follow comparable regulations in the EU, 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 company blames on heavy regulation.

For instance, some Apple Intelligence features which have been rolled out in other regions are not available in the European market.

"Apple encounters fierce competition in every market where we do business, and we work tirelessly to create the best products, services and customer interface," the organization said in a statement.

"The UK's adoption of European regulations would undermine that, leaving users with reduced data protection and safety, delayed access to latest functions, and a divided, more complicated user journey."

Google's Standpoint

Google device owners can presently use alternative marketplaces - though critics say they are not as smooth as the company's official Play Store.

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

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

The executive said "the majority" of Google device owners use third-party platforms or download apps straight from a developer's website, and claimed there is a much wider selection of apps offered for Android users compared to those on Apple devices.

"Currently available are twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the representative continued.

Google's platform is an open-source operating system, which means developers can use and build on top of it for no cost.

The company argues this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in other countries "currently assist businesses to develop and providing customers more choice".

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