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Apple could be required to allow competitors to operate separate app stores on iPhones in the UK, after a ruling from the market watchdog.

This would be a significant change to Apple's well-known "walled garden" 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 "strategic market status" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Findings

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

But the authority clarified it did not "determine or presume wrongdoing" from the companies.

"Mobile applications generates 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these markets function properly for enterprises," commented a top executive from the CMA.

Around ninety to one hundred percent of British smartphones operate using the two tech companies' mobile platforms, creating what the authority calls an "virtual monopoly".

According to recent analysis, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

The Company's Response

The CMA's investigation focused on how dominant Apple and Google's own apps are compared with rivals - as well as their web applications and platform software.

It is unclear what modifications the regulator will look to request, but previously it published roadmaps detailing potential measures it could take.

These comprise mandating it to be easier for people to transition between Apple and Android phones, and for both companies to rank apps "fairly and openly" in their marketplaces.

The Cupertino company particularly may be compelled to allow alternative app stores on its products, and enable people to install apps directly from developer sites.

This would mirror comparable regulations in the EU, which previously imposed measures against Apple for restrictive practices.

The technology firm warned the UK could face delays to receiving updates - as has occurred in the EU - which the organization attributes to strict rules.

For instance, some AI features which have been rolled out in other parts of the world are not available in the EU.

"Apple encounters intense rivalry in every market where we do business, and we work tirelessly to create the best products, services and user experience," the company said in a release.

"Britain's implementation of European regulations would weaken that, leaving users with reduced data protection and safety, delayed access to latest functions, and a fragmented, less seamless user journey."

The Search Giant's Position

Android users can presently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

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

"We simply do not see the rationale for the current classification," a company competition lead remarked.

The representative said "most" of Android users use third-party platforms or install applications directly from a creator's site, and asserted there is a much wider selection of applications offered for Android users compared to those on iOS products.

"There are now twenty-four thousand Google-compatible devices from thirteen hundred phone manufacturers globally, facing strong rivalry from Apple's platform in the UK," the representative added.

Google's platform is an freely available software, which means creators can use and build on top of it for no cost.

Google contends this means it promotes competition.

But advocacy organizations said restrictions on these firms' dominance in other countries "are already helping enterprises to innovate and giving consumers more options".

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