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The iPhone maker could be required to permit competitors to operate separate application platforms on iPhones across Britain, after a ruling from the competition regulator.

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

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - effectively saying they have significant control over smartphone ecosystems.

Watchdog Assessment

The CMA said the tech firms "may be limiting progress and market rivalry".

But the regulator emphasized it did not "determine or presume misconduct" from the companies.

"The app economy generates 1.5% of the British economy and supports around 400,000 jobs, which is why it's essential these sectors work well for enterprises," stated a top executive from the CMA.

Around 90-100% of British smartphones run on the two tech companies' operating systems, creating what the authority calls an "virtual monopoly".

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 regulatory probe examined how dominant Apple and Google's own applications are versus competitors - as well as their browsers and platform software.

It is unclear what modifications the regulator will look to request, but earlier it published roadmaps detailing possible actions it could take.

These comprise mandating it to be easier for people to switch between Apple and Android devices, and for both firms 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 download programs directly from companies' websites.

This would mirror a similar ruling in the EU, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm cautioned the United Kingdom could lose access to getting new features - as has occurred in the European Union - which the company blames on strict rules.

For example, some AI features which have been rolled out in other regions are not accessible in the EU.

"We faces intense rivalry in every sector where we do business, and we work tirelessly to create the finest offerings, services and user experience," the company said in a statement.

"Britain's implementation of European regulations would undermine that, leaving users with weaker privacy and security, delayed access to latest functions, and a divided, more complicated experience."

The Search Giant's Standpoint

Android users can currently use alternative marketplaces - though critics say they are not as user-friendly as the company's official application marketplace.

The CMA's roadmap said Google may have to "modify the interface" of downloading apps directly from websites, as well as "remove user frictions" when using third-party platforms.

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

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

"There are now 24,000 Android phone models from 1,300 phone manufacturers worldwide, facing strong rivalry from iOS in the United Kingdom," the spokesperson added.

Android is an open-source operating system, which means developers can utilize and develop on top of it for no cost.

The company argues this means it promotes competition.

But consumer groups said curbs on these companies' power in different nations "currently assist enterprises to innovate and giving consumers more choice".

"Their dominance is now causing real harm by restricting choice for users and market rivalry for companies," stated a policy expert.