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

This would be a major shift to Apple's well-known "walled garden" where apps can only be downloaded from the company's App Store.

But the Competition and Markets Authority has classified both the tech giants as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Watchdog Assessment

The CMA said the two companies "could be restricting progress and market rivalry".

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

"Mobile applications generates 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," stated a top executive from the CMA.

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

Based on recent analysis, nearly half of British smartphone users use an iPhone - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

Apple's Reaction

The regulatory probe focused on how dominant the companies' own apps are versus rivals - as well as their browsers and operating systems.

It is unknown what modifications the authority 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 iOS and Android phones, and for both firms to list applications "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company specifically may be compelled to allow alternative app stores on its devices, and enable people to install apps directly from companies' websites.

This would follow comparable regulations in the European Union, which previously took action against Apple for restrictive practices.

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

For example, some Apple Intelligence capabilities which have been launched in other regions are not accessible in the EU.

"Apple encounters intense rivalry in every sector where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the organization said in a statement.

"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

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 "modify the interface" of installing applications directly from websites, as well as "remove user frictions" when using third-party platforms.

"We simply do not see the justification for today's designation decision," a Google competition lead stated.

The representative said "the majority" of Android users use third-party platforms or install applications straight from a developer's website, and claimed there is a much wider selection of applications available for Android users versus those on Apple devices.

"Currently available are 24,000 Android phone models from thirteen hundred device makers globally, facing intense competition from Apple's platform in the UK," the spokesperson added.

Android is an open-source operating system, which means creators can utilize and develop on top of it for no cost.

The company contends this means it opens up competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping businesses to develop and giving customers more options".

"Their dominance is now creating genuine problems by restricting choice for users and market rivalry for businesses," stated a policy expert.