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The iPhone maker may have to allow rivals to run separate app stores on iPhones in the UK, following a ruling from the competition regulator.

This represents a major shift to Apple's well-known "closed system" where applications 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 mobile platforms.

Watchdog Assessment

The regulator said the tech firms "may be limiting progress and competition".

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

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

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

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

Apple's Response

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

It is unknown what changes the authority will seek to implement, but previously it published roadmaps detailing potential measures it could take.

These comprise requiring 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.

The Cupertino company specifically may be compelled to permit alternative app stores on its products, 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 restrictive practices.

Apple cautioned the United Kingdom could lose access to receiving updates - as has happened in the European Union - 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 accessible in the European market.

"We faces intense rivalry in every sector where we operate, and we strive continuously to create the best products, solutions and customer interface," the organization said in a release.

"The UK's adoption of European regulations would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a fragmented, more complicated user journey."

Google's Position

Android users can presently use third-party app stores - though critics say they are not as user-friendly as the company's official application marketplace.

The CMA's roadmap said Google may have to "modify the interface" of installing applications directly from websites, as well as "remove user frictions" when using third-party platforms.

"There appears to be no the justification for today's designation decision," a Google competition lead stated.

The executive said "the majority" of Google device owners use third-party platforms or download apps directly from a creator's site, and claimed there is a far greater range of apps available for Android users compared to those on Apple devices.

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

Android is an open-source operating system, which means developers can use and build on top of it for free.

The company contends this means it opens up competition.

But consumer groups said curbs on these companies' power in different nations "currently assist businesses to develop and providing customers more options".

"The companies' control is now creating genuine problems by limiting options for users and competition for companies," stated a policy expert.