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Apple could be required to permit competitors to run separate app stores on iPhones in the UK, following a decision from the market watchdog.

This would be a major shift to the company's well-known "walled garden" where applications can only be installed from its own official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Watchdog Findings

The CMA said the two companies "could be restricting innovation and competition".

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

"Mobile applications contributes one and a half percent of the British economy and supports around 400,000 jobs, which is why it's crucial these sectors function properly for business," stated a senior official from the competition authority.

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

Based on recent analysis, nearly half of British smartphone users use an iPhone - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

The Company's Response

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

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

These comprise requiring it to be more straightforward for people to switch between iOS and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

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

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

The technology firm warned the United Kingdom could face delays to receiving updates - as has occurred in the European Union - which the company blames on strict rules.

For instance, some AI capabilities which have been launched in other parts of the world are not available in the EU.

"We faces intense rivalry in every sector where we do business, and we work tirelessly to create the best products, solutions and customer interface," the company said in a release.

"The UK's adoption of European regulations would weaken that, leaving users with weaker privacy and safety, slower availability to new features, and a fragmented, less seamless experience."

The Search Giant's Standpoint

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

The CMA's roadmap said Google may have to "modify the interface" of installing applications directly from websites, as well as "eliminate barriers" when using third-party platforms.

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

The representative said "most" of Google device owners use third-party platforms or download apps straight from a developer's website, and asserted there is a much wider selection of apps offered for Google device owners compared to those on iOS products.

"Currently available are twenty-four thousand Android phone models from thirteen hundred phone manufacturers globally, facing strong rivalry from Apple's platform in the UK," the representative added.

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

The company contends this means it opens up market competition.

But consumer groups said curbs on these companies' power in different nations "currently assist enterprises to develop and providing customers more choice".

"The companies' control is now causing real harm by limiting options for users and competition for businesses," commented a consumer advocate.