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The iPhone maker may have to allow competitors to operate separate application platforms on Apple devices in the UK, after a decision from the competition regulator.

This represents a significant change to the company's infamous "closed system" where applications can only be installed from its own official marketplace.

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - effectively saying they have significant control over smartphone ecosystems.

Watchdog Assessment

The CMA said the tech firms "may be limiting innovation and market rivalry".

But the authority emphasized it did not "find or assume wrongdoing" from the firms.

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

Around ninety to one hundred percent of British smartphones run on Apple or Google's operating systems, creating what the regulator calls an "effective duopoly".

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

The Company's Reaction

The CMA's investigation focused on how dominant Apple and Google's own apps are compared with competitors - as well as their web applications and operating systems.

It is unclear what modifications the authority will look to request, but previously it published guidelines detailing potential measures it could take.

These comprise mandating it to be easier for people to transition between iOS and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

Apple specifically may be required to permit third-party marketplaces on its products, and enable people to install apps straight from companies' websites.

This would mirror comparable regulations in the EU, which previously took action against Apple for restrictive practices.

Apple cautioned the United Kingdom could lose access to getting new features - as has happened in the EU - which the organization blames on heavy regulation.

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

"We encounters fierce competition in every sector where we do business, and we work tirelessly to create the best products, services and user experience," the organization said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and security, delayed access to new features, and a divided, less seamless user journey."

Google's Standpoint

Android users can currently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said Google may have to "change the user experience" of installing applications directly from websites, as well as "eliminate barriers" when using third-party platforms.

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

The executive said "the majority" of Android users use third-party platforms or download apps straight from a developer's website, and claimed there is a far greater range of apps offered for Google device owners compared to those on iOS products.

"Currently available are twenty-four thousand Google-compatible devices from thirteen hundred phone manufacturers globally, facing strong rivalry from Apple's platform in the UK," the representative continued.

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

Google argues this means it promotes market competition.

But advocacy organizations said curbs on these companies' power in different nations "are already helping businesses to innovate and providing consumers more choice".

"The companies' control is now causing real harm by restricting choice for users and competition for companies," commented a policy expert.