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The iPhone maker may have to permit competitors to run separate application platforms on iPhones 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 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" - effectively saying they have significant control over mobile platforms.

Regulatory Assessment

The regulator said the two companies "may be limiting progress and market rivalry".

But the regulator emphasized it did not "find or assume 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 crucial these sectors function properly for business," commented a top executive from the competition authority.

Around 90-100% of British smartphones operate using Apple or Google's operating systems, 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 vast majority of the rest using the Android OS.

The Company's Response

The CMA's investigation focused on how dominant the companies' own apps are versus competitors - as well as their browsers and operating systems.

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

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

The Cupertino company particularly may be compelled to allow third-party marketplaces on its products, and let people to download programs straight from companies' websites.

This would follow comparable regulations in the EU, which previously took action against Apple for anti-competitive behaviour.

The technology firm warned the United Kingdom could face delays to receiving updates - as has happened in the European Union - which the organization attributes to heavy regulation.

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

"We encounters intense rivalry in every sector where we do business, and we strive continuously to create the finest offerings, solutions and customer interface," the organization said in a release.

"Britain's implementation of European regulations would undermine that, resulting in consumers with reduced data protection and security, delayed access to latest functions, and a fragmented, more complicated user journey."

The Search Giant's Standpoint

Android users can currently use alternative marketplaces - though commentators 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 websites, as well as "eliminate barriers" when using alternative app stores.

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

The representative said "the majority" of Android users use alternative app stores or install applications directly from a developer's website, and claimed there is a much wider selection of applications available for Android users versus those on iOS products.

"Currently available are 24,000 Android phone models from thirteen hundred phone manufacturers worldwide, facing intense competition from iOS in the United Kingdom," the representative added.

Google's platform is an freely available software, which means developers can utilize and develop on top of it for free.

Google contends this means it promotes competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping enterprises to innovate and providing consumers more choice".

"The companies' control is now creating genuine problems by limiting options for users and market rivalry for businesses," commented a policy expert.