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The iPhone maker may have to permit competitors to operate their own app stores on iPhones across Britain, following a ruling from the competition regulator.

This represents a major shift to Apple's infamous "walled garden" where apps can only be installed from its own App Store.

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have a lot of power over mobile platforms.

Watchdog Findings

The regulator said the tech firms "could be restricting innovation and market rivalry".

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

"Mobile applications generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's essential these sectors function properly for business," commented a senior official from the CMA.

Approximately ninety to one hundred percent of British smartphones operate using Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

According to current data, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

Apple's Response

The regulatory probe focused on how prominent the companies' own applications are compared with rivals - as well as their browsers and operating systems.

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

These include requiring it to be easier for people to transition between iOS and Android devices, and for both companies to rank apps "fairly and openly" in their marketplaces.

The Cupertino company specifically may be compelled to permit alternative app stores on its products, and let people to install apps directly from developer sites.

This would mirror a similar ruling in the EU, which previously imposed measures against Apple for anti-competitive behaviour.

The technology firm cautioned the United Kingdom could lose access to receiving updates - as has happened in the EU - which the company attributes to strict rules.

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 market where we operate, and we work tirelessly to create the finest offerings, services and user experience," the company said in a release.

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

Google's Position

Google device owners can presently use third-party app stores - though critics say they are not as smooth 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 online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the rationale for today's designation decision," a company policy executive stated.

The representative said "the majority" of Android users use alternative app stores or download apps straight from a creator's site, and asserted there is a far greater range of applications available for Google device owners versus those on iOS products.

"There are now twenty-four thousand Google-compatible devices from thirteen hundred device makers globally, facing intense competition from iOS in the United Kingdom," the spokesperson continued.

Android is an freely available software, which means developers can use and build on top of it for no cost.

Google contends this means it opens up market competition.

But consumer groups said restrictions on these firms' dominance in other countries "are already helping businesses to develop and giving consumers more choice".

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