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Apple may have to permit rivals to operate separate app stores on iPhones in the UK, after a decision from the competition regulator.

This would be a major shift to Apple's well-known "closed system" where applications can only be downloaded from the company's official marketplace.

But the UK competition watchdog has classified both the tech giants as having "strategic market status" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Findings

The regulator said the tech firms "may be limiting progress and competition".

But the regulator clarified it did not "determine or presume misconduct" from the firms.

"Mobile applications generates one and a half percent of the British economy and sustains around 400,000 jobs, which is why it's crucial these sectors work well for enterprises," stated a senior official from the CMA.

Around 90-100% of UK mobile devices run on Apple or Google's mobile platforms, creating what the authority calls an "effective duopoly".

According to current data, 48.5% of UK mobile owners own an iPhone - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

The Company's Response

The CMA's investigation examined how dominant the companies' own applications are versus rivals - as well as their browsers and operating systems.

It is unclear what modifications the authority will look to request, but previously it published guidelines outlining possible actions it could take.

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

Apple specifically may be compelled to allow alternative app stores on its products, and let people to download programs straight from companies' websites.

This would follow comparable regulations in the EU, which previously took action against Apple for anti-competitive behaviour.

Apple cautioned the UK could face delays to getting new features - as has happened in the European Union - which the organization blames on strict rules.

For example, some Apple Intelligence features which have been launched in other parts of the world are not available in the European market.

"We encounters intense rivalry in every sector where we operate, and we work tirelessly to create the finest offerings, solutions and customer interface," the organization said in a release.

"Britain's implementation of EU-style rules would weaken that, leaving users with reduced data protection and safety, delayed access to new features, and a divided, less seamless experience."

Google's Position

Android users can presently 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 the search company may have to "modify the interface" of installing applications directly from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for the current classification," a Google policy executive stated.

The executive said "most" of Android users use third-party platforms or install applications directly from a developer's website, and claimed there is a much wider selection of apps offered for Google device owners compared to those on iOS products.

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing intense competition from Apple's platform in the United Kingdom," the representative added.

Android is an freely available software, which means developers can utilize and develop on top of it for no cost.

The company argues this means it opens up competition.

But advocacy organizations said restrictions on these firms' dominance in different nations "are already helping enterprises to innovate and providing customers more choice".

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