The tech giant could be compelled to allow competing application marketplaces in UK.

Apple could be required to allow rivals to run their own application platforms on Apple devices in the UK, after a decision from the competition regulator.

This would be a major shift to Apple's well-known "closed system" where apps can only be installed from the company's official marketplace.

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

Watchdog Assessment

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

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

"The app economy contributes one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these markets function properly for business," commented a senior official from the CMA.

Approximately 90-100% of UK mobile devices run on the two tech companies' mobile platforms, creating what the authority calls an "effective duopoly".

According to recent analysis, 48.5% of British smartphone users use an iPhone - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

The Company's Response

The CMA's investigation focused on how prominent Apple and Google's own apps are compared with competitors - as well as their browsers and platform software.

It is unclear what changes the regulator will seek to implement, but previously it published guidelines detailing potential measures it could take.

These include requiring it to be easier for people to switch between Apple and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be required to permit alternative app stores on its products, and let people to install apps straight from developer sites.

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

The technology firm cautioned the UK could lose access to getting new features - as has happened in the EU - which the company attributes to heavy regulation.

For instance, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the EU.

"Apple encounters intense rivalry in every market where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the company said in a statement.

"The UK's adoption of European regulations would weaken that, leaving users with weaker privacy and safety, delayed access to latest functions, and a fragmented, less seamless experience."

Google's Standpoint

Android users can currently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of downloading apps straight from websites, as well as "eliminate barriers" when using alternative app stores.

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

The representative said "the majority" of Google device owners use third-party platforms or install applications directly from a developer's website, and asserted there is a far greater range of apps offered for Android users versus those on Apple devices.

"Currently available are 24,000 Android phone models from 1,300 phone manufacturers globally, facing strong rivalry from iOS in the United Kingdom," the representative added.

Android is an freely available software, which means developers can utilize and develop on top of it for no cost.

Google contends this means it opens up competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping businesses to innovate and providing customers more choice".

"Their dominance is now creating genuine problems by limiting options for users and market rivalry for companies," commented a policy expert.