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The iPhone maker may have to permit competitors to operate their own app stores on iPhones across Britain, following a ruling from the competition regulator.

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

But the UK competition watchdog has classified both Apple and Google as having "dominant market position" - indicating they have significant control over mobile platforms.

Watchdog Findings

The CMA said the tech firms "could be restricting progress and market rivalry".

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

"Mobile applications contributes 1.5% of the British economy and supports around 400,000 jobs, which is why it's crucial these markets function properly for enterprises," stated a senior official from the CMA.

Around 90-100% of UK mobile devices operate using Apple or Google's operating systems, creating what the authority calls an "effective duopoly".

Based on recent analysis, 48.5% of UK mobile owners 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 prominent the companies' own apps are compared with competitors - as well as their browsers and platform software.

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

These include mandating it to be more straightforward for people to transition between Apple and Android phones, and for both firms to list applications "fairly and openly" in their app stores.

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 follow comparable regulations in the EU, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm cautioned the UK could face delays to receiving updates - as has happened in the EU - which the company attributes to heavy regulation.

For example, some Apple Intelligence features which have been rolled out in other regions are not available in the EU.

"Apple encounters fierce competition in every market where we operate, and we strive continuously to create the best products, services and customer interface," the company said in a release.

"Britain's implementation of European regulations would weaken that, leaving users with weaker privacy and safety, slower availability to latest functions, and a divided, 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 the company's official Play Store.

The CMA's roadmap said Google may have to "modify the interface" of installing applications directly from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the rationale for today's designation decision," a company policy executive remarked.

The executive said "the majority" of Google device owners use alternative app stores or install applications straight from a creator's site, and asserted there is a much wider selection of applications offered for Android users compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson continued.

Android is an open-source operating system, which means developers can utilize and develop on top of it for free.

The company argues this means it promotes market competition.

But consumer groups said curbs on these companies' power in other countries "are already helping businesses to innovate and providing customers more options".

"Their dominance is now causing real harm by limiting options for users and competition for businesses," stated a consumer advocate.