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Apple may have to permit rivals to run their own app stores on iPhones in the UK, following a ruling from the competition regulator.

This would be a significant change to the company's infamous "walled garden" where applications can only be installed from its own official marketplace.

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

Regulatory Findings

The regulator said the tech firms "could be restricting progress and competition".

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

"Mobile applications generates one and a half percent of the British economy and supports around 400,000 jobs, which is why it's crucial these markets work well for enterprises," commented a top executive from the competition authority.

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

Based on recent analysis, nearly half of British smartphone users own an iPhone - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

The Company's Reaction

The CMA's investigation focused on how dominant Apple and Google's own apps are versus rivals - as well as their web applications and operating systems.

It is unknown what modifications the regulator will look to request, but previously it published guidelines outlining potential measures it could take.

These comprise requiring it to be more straightforward for people to transition between Apple and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.

The Cupertino company particularly may be required to allow alternative app stores on its devices, and let people to install apps directly from developer sites.

This would follow a similar ruling in the EU, which previously took action against Apple for anti-competitive behaviour.

The technology firm cautioned the United Kingdom could face delays to getting new features - as has happened in the European Union - which the company attributes to strict rules.

For example, some AI features which have been launched in other parts of the world are not available in the EU.

"We encounters intense rivalry in every sector where we do business, and we strive continuously to create the finest offerings, solutions and customer interface," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, resulting in consumers with weaker privacy and security, slower availability to new features, and a fragmented, less seamless user journey."

The Search Giant's Position

Google device owners can currently use third-party app stores - though commentators say they are not as smooth as the company's official Play Store.

The regulator's plan said Google may have to "modify the interface" of downloading apps directly from online sources, as well as "remove user frictions" when using alternative app stores.

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

The executive said "most" of Android users use third-party platforms or install applications directly from a creator's site, and claimed there is a far greater range of applications available for Android users versus those on iOS products.

"Currently available are 24,000 Android phone models from thirteen hundred device makers globally, facing intense competition from Apple's platform in the United Kingdom," the spokesperson continued.

Google's platform is an open-source operating system, which means creators can use and build on top of it for free.

Google contends this means it opens up market competition.

But consumer groups said restrictions on these companies' power in other countries "are already helping businesses to develop and giving customers more choice".

"Their dominance is now causing real harm by limiting options for consumers and market rivalry for companies," stated a policy expert.