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The iPhone maker could be required to permit competitors to operate separate app stores on Apple devices in the UK, following a decision from the competition regulator.

This would be a major shift to the company's infamous "walled garden" where applications can only be downloaded from the company's App Store.

But the UK competition watchdog has classified both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Regulatory Assessment

The CMA said the two companies "may be limiting innovation and market rivalry".

But the authority emphasized it did not "find or assume misconduct" from the firms.

"The app economy contributes one and a half percent of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these markets work well for business," commented a senior official from the CMA.

Around 90-100% of British smartphones operate using the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

Based on current data, nearly half of British smartphone users own an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

Apple's Reaction

The regulatory probe examined how dominant Apple and Google's own apps are compared with rivals - as well as their browsers and platform software.

It is unclear what changes the regulator will seek to implement, but earlier it published roadmaps outlining possible actions it could take.

These include requiring it to be more straightforward for people to transition between iOS and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple particularly may be required to allow third-party marketplaces on its devices, and enable people to install apps directly from developer sites.

This would follow a similar ruling in the EU, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm warned the UK could lose access to getting new features - as has happened in the European Union - which the organization attributes to strict rules.

For example, some AI capabilities which have been rolled out in other regions are not accessible in the EU.

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

"Britain's implementation of European regulations would weaken that, leaving users with reduced data protection and security, delayed access to new features, and a fragmented, less seamless experience."

Google's Position

Google device owners can currently use third-party app stores - though commentators say they are not as user-friendly as Google's own application marketplace.

The regulator's plan said Google may have to "change the user experience" of downloading apps directly from online sources, as well as "remove user frictions" when using third-party platforms.

"There appears to be no the rationale for the current classification," a Google policy executive stated.

The representative 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 applications available for Google device owners compared to those on iOS products.

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

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

The company argues this means it promotes market competition.

But consumer groups said curbs on these firms' dominance in other countries "are already helping businesses to innovate and providing customers more choice".

"Their dominance is now causing real harm by restricting choice for consumers and market rivalry for companies," stated a policy expert.