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The iPhone maker may have to permit rivals to run their own application platforms on iPhones across Britain, following a ruling from the market watchdog.

This represents a significant change to Apple's infamous "closed system" where applications can only be installed from its own official marketplace.

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

Regulatory Assessment

The CMA said the two companies "may be limiting innovation and competition".

But the authority clarified it did not "find or assume wrongdoing" 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 work well for enterprises," commented a senior official from the competition authority.

Approximately 90-100% of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "virtual monopoly".

Based on current data, nearly half of UK mobile owners use an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

Apple's Response

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

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

These comprise requiring it to be easier for people to switch between iOS and Android devices, and for both firms to list applications "fairly and openly" in their marketplaces.

Apple specifically may be compelled to permit alternative app stores on its devices, and enable people to download programs straight from companies' websites.

This would mirror comparable regulations in the European Union, which previously took action against Apple for anti-competitive behaviour.

Apple cautioned the UK could face delays to getting new features - as has occurred in the EU - which the organization blames on heavy regulation.

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

"We encounters intense rivalry in every market where we do business, and we strive continuously to create the best products, services and user experience," the organization said in a statement.

"Britain's implementation of European regulations would undermine that, leaving users with reduced data protection and security, delayed access to new features, and a fragmented, less seamless user journey."

The Search Giant's Standpoint

Android users can presently use third-party app stores - though commentators say they are not as smooth as Google's own application marketplace.

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

"We simply do not see the rationale for the current classification," a Google competition lead remarked.

The executive said "most" of Google device owners use alternative app stores or install applications directly from a developer's website, and claimed there is a far greater range of applications offered for Google device owners compared to those on Apple devices.

"Currently available are 24,000 Google-compatible devices from 1,300 device makers worldwide, facing intense competition from Apple's platform in the UK," the spokesperson continued.

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 promotes competition.

But consumer groups said restrictions on these firms' dominance in other countries "currently assist enterprises to innovate and providing consumers more choice".

"The companies' control is now creating genuine problems by limiting options for users and competition for companies," stated a policy expert.