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Apple may have to permit competitors to operate their own app stores on Apple devices in the UK, after a decision from the market watchdog.

This would be a major shift to Apple's infamous "walled garden" where applications can only be installed from the company's official marketplace.

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - indicating they have significant control over mobile platforms.

Regulatory Assessment

The CMA said the tech firms "could be restricting progress and market rivalry".

But the regulator clarified it did not "determine or presume wrongdoing" from the firms.

"The app economy contributes 1.5% of the British economy and supports around 400,000 jobs, which is why it's essential these sectors function properly for business," commented a top executive from the CMA.

Around ninety to one hundred percent of British smartphones run on the two tech companies' operating systems, creating what the authority calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

The Company's Reaction

The regulatory probe 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 seek to implement, but previously it published roadmaps detailing possible actions it could take.

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

Apple specifically may be required to permit alternative app stores on its devices, and enable people to install apps directly from companies' websites.

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

The technology firm cautioned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the organization attributes to heavy regulation.

For instance, some Apple Intelligence features which have been rolled out in other regions are not available in the European market.

"Apple faces fierce competition in every market where we operate, and we work tirelessly to create the best products, solutions and user experience," the company said in a release.

"Britain's implementation of EU-style rules would weaken that, leaving users with reduced data protection and safety, delayed access to new features, and a fragmented, less seamless user journey."

Google's Position

Google device owners can presently use alternative marketplaces - though critics say they are not as user-friendly as the company's official application marketplace.

The regulator's plan said the search company may have to "change the user experience" of downloading apps directly from online sources, as well as "eliminate barriers" when using third-party platforms.

"We simply do not see the rationale for today's designation decision," a Google competition lead stated.

The executive said "the majority" of Google device owners use alternative app stores or install applications straight from a developer's website, and asserted there is a far greater range of apps offered for Google device owners compared to those on iOS products.

"There are now twenty-four thousand Android phone models from thirteen hundred device makers worldwide, facing intense competition from Apple's platform in the UK," 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 contends this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in different nations "currently assist businesses to innovate and giving customers more choice".

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