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Apple may have to allow rivals to operate separate app stores on Apple devices across Britain, after a ruling from the market watchdog.

This represents a major shift to the company's infamous "closed system" where applications can only be downloaded from the company's official marketplace.

But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Watchdog Findings

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

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

"Mobile applications contributes 1.5% of the British economy and sustains 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.

Approximately ninety to one hundred percent of British smartphones 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 remaining users using Google's Android.

Apple's Reaction

The CMA's investigation examined how prominent Apple and Google's own apps 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 guidelines outlining potential measures it could take.

These comprise mandating it to be easier for people to switch between iOS and Android phones, and for both firms to list applications "fairly and openly" in their marketplaces.

Apple specifically may be compelled to allow third-party marketplaces on its products, and let people to download programs straight from developer sites.

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

The technology firm warned the UK could lose access to getting new features - as has occurred in the EU - which the organization blames on heavy regulation.

For instance, some AI capabilities which have been rolled out in other regions are not accessible in the European market.

"We encounters intense rivalry in every sector where we do business, and we work tirelessly to create the finest offerings, services and user experience," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with weaker privacy and safety, slower availability to new features, and a divided, less seamless user journey."

The Search Giant's Standpoint

Android users can presently use third-party app stores - though critics say they are not as smooth as the company's official Play Store.

The regulator's plan said Google may have to "change the user experience" of downloading apps directly from online sources, as well as "remove user frictions" when using alternative app stores.

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

The representative said "most" of Google device owners use alternative app stores or install applications directly from a creator's site, and asserted there is a much wider selection of applications offered for Android users versus those on iOS products.

"Currently available are 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from Apple's platform in the UK," the representative added.

Google's platform is an freely available software, which means creators can utilize and develop on top of it for no cost.

The company contends this means it opens up competition.

But advocacy organizations said curbs on these companies' power in other countries "currently assist enterprises to develop and giving customers more choice".

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