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The iPhone maker could be required to allow rivals to operate separate application platforms on Apple devices in the UK, after a ruling from the market watchdog.

This would be a significant change to the company's infamous "walled garden" where applications can only be installed from the company's App Store.

But the UK competition watchdog has designated both Apple and Google 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 "find or assume misconduct" from the firms.

"Mobile applications generates 1.5% of the UK's GDP and supports around 400,000 jobs, which is why it's essential these markets function properly for business," commented a senior official from the CMA.

Around 90-100% of UK mobile devices run on Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

According to recent analysis, nearly half of UK mobile owners use an Apple device - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

Apple's Response

The regulatory probe examined how prominent the companies' own applications are compared with rivals - as well as their web applications and platform software.

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

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

Apple particularly may be required to permit alternative app stores on its devices, and enable 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 restrictive practices.

The technology firm cautioned the United Kingdom could face delays to getting new features - as has happened in the EU - which the company attributes to heavy regulation.

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

"We encounters intense rivalry in every market where we operate, and we strive continuously to create the best products, services and user experience," the company said in a statement.

"Britain's implementation of European regulations would undermine that, resulting in consumers with weaker privacy and safety, slower availability to new features, and a divided, less seamless experience."

Google's Position

Android users can presently use alternative marketplaces - 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 installing applications straight from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the justification for the current classification," a Google policy executive 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 applications available for Google device owners versus those on iOS products.

"There are now 24,000 Android phone models from thirteen hundred phone manufacturers worldwide, facing intense competition from iOS in the UK," the spokesperson added.

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

The company argues this means it opens up competition.

But advocacy organizations said restrictions on these firms' dominance in other countries "are already helping enterprises to develop and giving customers more options".

"The companies' control is now creating genuine problems by restricting choice for consumers and market rivalry for businesses," commented a policy expert.