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The iPhone maker may have to permit rivals to operate their own app stores on iPhones in the UK, following a decision from the market watchdog.

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

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

Watchdog Findings

The regulator said the two companies "could be restricting innovation and competition".

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

"Mobile applications contributes one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these markets function properly for business," stated a senior official from the CMA.

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

According to current data, nearly half of UK mobile owners use an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

The Company's Reaction

The regulatory probe examined how prominent the companies' own apps are versus competitors - as well as their web applications and platform software.

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

These include mandating it to be more straightforward for people to switch between Apple and Android phones, and for both companies to rank apps "fairly and openly" in their app stores.

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

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

The technology firm warned the United Kingdom could lose access to receiving updates - as has occurred 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 accessible in the European market.

"Apple encounters intense rivalry in every sector where we operate, and we strive continuously to create the best products, solutions and customer interface," the organization said in a release.

"The UK's adoption of European regulations would undermine that, leaving users with reduced data protection and safety, slower availability to new features, and a fragmented, less seamless experience."

Google's Standpoint

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

The regulator's plan said Google may have to "modify the interface" of installing applications straight from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the justification for today's designation decision," a Google policy executive stated.

The executive said "most" of Google device owners use third-party platforms or download apps directly from a creator's site, and asserted there is a much wider selection of applications available for Google device owners compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing intense competition from Apple's platform 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 opens up competition.

But consumer groups said restrictions on these companies' power in other countries "are already helping enterprises to innovate and providing customers more options".

"The companies' control is now creating genuine problems by restricting choice for users and competition for companies," stated a consumer advocate.