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The iPhone maker could be required to permit competitors to run separate app stores on iPhones in the UK, following a ruling from the competition regulator.

This would be a major shift to Apple's well-known "walled garden" where applications can only be installed from its own official marketplace.

But the UK competition watchdog has classified both the tech giants as having "dominant market position" - indicating they have a lot of power over smartphone ecosystems.

Watchdog Assessment

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.

"The app economy contributes one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these sectors work well for business," commented a top executive from the competition authority.

Approximately ninety to one hundred percent of UK mobile devices operate using the two tech companies' mobile platforms, creating what the authority calls an "effective duopoly".

According to current data, 48.5% of UK mobile owners use an iPhone - which runs Apple's iOS - with the vast majority of the remaining users using Google's Android.

Apple's Reaction

The CMA's investigation focused on how prominent Apple and Google's own applications are versus competitors - as well as their web applications and platform software.

It is unknown what modifications the regulator will look to request, but earlier it published guidelines detailing possible actions it could take.

These include requiring it to be more straightforward 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 required to allow alternative app stores on its products, and enable people to install apps straight from companies' websites.

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

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

For instance, some AI features which have been rolled out in other parts of the world are not accessible in the EU.

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

"The UK's adoption of European regulations would undermine that, resulting in consumers with weaker privacy and safety, slower availability to new features, and a divided, more complicated user journey."

Google's Position

Android users can currently use third-party app stores - 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 downloading apps directly from online sources, as well as "remove user frictions" when using third-party platforms.

"There appears to be no the justification for today's designation decision," a company competition lead stated.

The representative said "most" of Google device owners use third-party platforms or install applications straight from a creator's site, and asserted there is a much wider selection of applications available for Google device owners versus those on iOS products.

"There are now 24,000 Android phone models from thirteen hundred device makers worldwide, facing intense competition from iOS 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 free.

The company contends this means it opens up market competition.

But advocacy organizations said curbs on these firms' dominance in other countries "are already helping businesses to innovate and giving customers more options".

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