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Apple may have to allow rivals to operate separate app stores on Apple devices in the UK, after a decision from the market watchdog.

This would be a significant change to the company's infamous "closed system" where applications can only be downloaded from its own App Store.

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 regulator said the tech firms "may be limiting progress and market rivalry".

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

"Mobile applications contributes 1.5% 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 senior official from the CMA.

Around ninety to one hundred percent of UK mobile devices operate using the two tech companies' operating systems, creating what the regulator calls an "virtual monopoly".

Based on current data, nearly half of British smartphone users use an iPhone - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

The Company's Reaction

The regulatory probe examined how dominant the companies' own applications are compared with rivals - as well as their web applications and operating systems.

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

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

The Cupertino company specifically may be compelled to permit third-party marketplaces on its products, and enable people to download programs directly from developer sites.

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

The technology firm warned the United Kingdom could face delays to receiving updates - as has occurred in the European Union - which the organization attributes to strict rules.

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

"Apple faces intense rivalry in every market where we do business, and we work tirelessly to create the best products, solutions and customer interface," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with reduced data protection and safety, slower availability to new features, and a divided, more complicated experience."

Google's Standpoint

Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as Google's own application marketplace.

The CMA's roadmap said Google may have to "change the user experience" of downloading apps directly from online sources, as well as "remove user frictions" 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 "most" of Google device owners use alternative app stores or install applications straight from a creator's site, and asserted there is a far greater range of apps available for Android users versus those on iOS products.

"Currently available are 24,000 Google-compatible devices from thirteen hundred phone manufacturers worldwide, facing strong rivalry from Apple's platform in the UK," the spokesperson continued.

Android is an open-source operating system, which means creators can utilize and develop on top of it for no cost.

The company argues this means it opens up competition.

But advocacy organizations said restrictions on these companies' power in other countries "are already helping enterprises to develop and providing customers more options".

"Their dominance is now creating genuine problems by restricting choice for users and market rivalry for businesses," stated a consumer advocate.