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The iPhone maker may have to allow rivals to operate their own app stores on Apple devices in the UK, after a decision from the market watchdog.

This represents a major shift to Apple's infamous "closed system" where apps can only be downloaded from its own official marketplace.

But the Competition and Markets Authority has classified both Apple and Google as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Regulatory Assessment

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

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

"Mobile applications generates one and a half percent of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these sectors function properly for enterprises," commented a top executive from the competition authority.

Around ninety to one hundred percent of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

Apple's Response

The regulatory probe focused on how dominant the companies' own applications are compared with rivals - as well as their browsers and platform software.

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

These comprise requiring it to be easier for people to switch between Apple and Android devices, and for both companies to rank apps "fairly and openly" in their app stores.

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

This would follow comparable regulations in the European Union, which previously imposed measures against the company for restrictive practices.

Apple warned the UK could lose access to receiving updates - as has happened in the European Union - which the organization attributes to heavy regulation.

For example, some Apple Intelligence features which have been rolled out in other regions are not available in the EU.

"Apple encounters fierce competition in every sector where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with reduced data protection and security, delayed access to latest functions, and a fragmented, more complicated experience."

Google's Position

Google device owners can presently use alternative marketplaces - though commentators say they are not as smooth as the company's official Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of installing applications straight from online sources, as well as "remove user frictions" when using third-party platforms.

"We simply do not see the justification for today's designation decision," a company competition lead remarked.

The representative said "most" of Android users use alternative app stores or download apps directly from a creator's site, 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 worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson added.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for free.

Google contends this means it promotes competition.

But advocacy organizations said curbs on these companies' power in different nations "are already helping enterprises to develop and giving consumers more options".

"Their dominance is now causing real harm by restricting choice for users and competition for businesses," stated a policy expert.