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The iPhone maker could be required to allow competitors to run separate application platforms on Apple devices in the UK, following a decision from the market watchdog.

This would be a significant change to Apple's well-known "closed system" where applications can only be downloaded from its own App Store.

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - effectively saying they have a lot of power over smartphone ecosystems.

Regulatory Assessment

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

But the regulator clarified it did not "find or assume wrongdoing" from the firms.

"The app economy contributes 1.5% of the British economy and supports around four hundred thousand positions, which is why it's essential these markets work well for business," commented a top executive from the CMA.

Approximately ninety to one hundred percent of British smartphones run on Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners use an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using the Android OS.

Apple's Reaction

The CMA's investigation focused on how prominent Apple and Google's own applications are compared with competitors - as well as their web applications and operating systems.

It is unknown what modifications the regulator will seek to implement, but earlier it published roadmaps detailing potential measures it could take.

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

The Cupertino company particularly may be required to permit third-party marketplaces on its devices, and let people to download programs directly from developer sites.

This would follow comparable regulations in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.

Apple warned the United Kingdom could lose access to getting new features - as has happened in the European Union - which the organization blames on heavy regulation.

For example, some Apple Intelligence capabilities which have been launched in other regions are not accessible in the European market.

"We faces fierce competition in every market where we operate, and we work tirelessly to create the finest offerings, solutions and customer interface," the company said in a release.

"The UK's adoption of EU-style rules would weaken that, resulting in consumers with reduced data protection and security, slower availability to new features, and a divided, more complicated user journey."

The Search Giant's Position

Android users can currently use third-party app stores - though critics say they are not as user-friendly as Google's own Play Store.

The regulator's plan said Google may have to "change the user experience" of downloading apps straight from websites, as well as "eliminate barriers" when using third-party platforms.

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

The representative said "the majority" of Google device owners use alternative app stores or download apps directly from a developer's website, and claimed there is a far greater range of applications available for Google device owners compared to those on Apple devices.

"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 continued.

Google's platform is an freely available software, which means developers can use and build on top of it for free.

Google argues this means it promotes market competition.

But consumer groups said restrictions on these companies' power in different nations "are already helping enterprises to develop and giving consumers more choice".

"The companies' control is now causing real harm by limiting options for users and market rivalry for companies," stated a consumer advocate.