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The iPhone maker may have to allow competitors to operate separate application platforms on Apple devices across Britain, after a ruling from the competition regulator.

This would be a significant change to Apple's infamous "closed system" where apps can only be downloaded from the company's official marketplace.

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

Regulatory Assessment

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

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

"The app economy generates one and a half percent of the British economy and supports around 400,000 jobs, which is why it's crucial these markets work well for business," stated a senior official from the CMA.

Approximately ninety to one hundred percent of British smartphones operate using Apple or Google's mobile platforms, creating what the authority calls an "virtual monopoly".

According to recent analysis, 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 Response

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

It is unknown what modifications the regulator will seek to implement, but previously it published guidelines outlining potential measures it could take.

These comprise mandating it to be easier for people to switch between Apple and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their marketplaces.

Apple particularly may be required to allow third-party marketplaces on its devices, and enable people to install apps straight from companies' websites.

This would mirror comparable regulations in the EU, which previously imposed measures against Apple for anti-competitive behaviour.

Apple cautioned the United Kingdom could lose access to receiving updates - as has occurred in the European Union - which the organization blames on heavy regulation.

For instance, some AI features which have been rolled out in other regions are not accessible in the European market.

"Apple encounters intense rivalry in every market where we operate, and we work tirelessly to create the finest offerings, solutions and customer interface," the organization said in a release.

"Britain's implementation of European regulations would weaken that, leaving users with weaker privacy and safety, delayed access to new features, and a divided, less seamless user journey."

The Search Giant's Position

Google device owners can presently use third-party app stores - though commentators say they are not as user-friendly as the company's official Play Store.

The regulator's plan said the search company may have to "change the user experience" of installing applications straight from online sources, as well as "eliminate barriers" when using third-party platforms.

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

The executive said "most" of Google device owners use third-party platforms or install applications directly from a developer's website, and asserted there is a far greater range of apps available for Google device owners versus those on Apple devices.

"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry from iOS in the United Kingdom," the spokesperson added.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for free.

The company argues this means it opens up market competition.

But consumer groups said curbs on these companies' power in other countries "are already helping enterprises to innovate and providing customers more choice".

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