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The iPhone maker may have to permit competitors to run separate app stores on iPhones in the UK, after a ruling from the competition regulator.

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

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - indicating they have significant control over mobile platforms.

Regulatory Assessment

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

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

"Mobile applications generates one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these sectors function properly for enterprises," stated a top executive from the CMA.

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

Based on current data, nearly half of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.

The Company's Reaction

The regulatory probe focused on how prominent the companies' own applications are compared with rivals - as well as their web applications and platform software.

It is unknown what changes the authority will seek to implement, but previously it published roadmaps outlining possible actions it could take.

These comprise mandating it to be easier for people to transition between iOS and Android devices, and for both companies to rank apps "fairly and openly" in their app stores.

The Cupertino company specifically may be required to permit third-party marketplaces on its products, 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.

Apple cautioned the UK could face delays to receiving updates - as has happened in the European Union - which the company attributes to strict rules.

For instance, some AI capabilities which have been rolled out in other parts of the world 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, services and user experience," the company said in a release.

"Britain's implementation of EU-style rules would weaken that, resulting in consumers with reduced data protection and safety, delayed access to latest functions, 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 Play Store.

The CMA's roadmap said Google may have to "change the user experience" of downloading apps directly from websites, as well as "remove user frictions" when using alternative app stores.

"There appears to be no the justification for today's designation decision," a company policy executive stated.

The representative said "most" of Google device owners use alternative app stores or download apps directly from a developer's website, and asserted there is a far greater range of apps available for Google device owners versus those on Apple devices.

"Currently available are 24,000 Android phone models from 1,300 phone manufacturers globally, facing intense competition from iOS in the UK," the representative added.

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

Google contends this means it opens up market competition.

But advocacy organizations said restrictions on these firms' dominance in different nations "currently assist businesses to innovate and providing consumers more options".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for businesses," commented a consumer advocate.