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Apple may have to allow rivals to operate their own app stores on iPhones in the UK, following a ruling from the market watchdog.

This would be a significant change to Apple's infamous "walled garden" where apps can only be installed from its own official marketplace.

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

Regulatory Findings

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

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

"Mobile applications generates 1.5% of the UK's GDP and supports around 400,000 jobs, which is why it's crucial these sectors function properly for enterprises," commented a senior official from the competition authority.

Around ninety to one hundred percent of British smartphones run on the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

Based on current data, nearly half of British smartphone users own an Apple device - which runs the iOS operating system - 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 versus rivals - as well as their browsers 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 requiring it to be more straightforward for people to switch between Apple and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple particularly may be required to allow alternative app stores on its devices, 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 the company for anti-competitive behaviour.

The technology firm cautioned the UK could face delays to receiving updates - as has occurred in the European Union - which the company attributes to heavy regulation.

For example, some AI capabilities which have been rolled out in other parts of the world are not accessible in the European market.

"We faces intense rivalry in every sector where we do business, and we strive continuously to create the best products, services and user experience," the company said in a release.

"Britain's implementation of European regulations would undermine that, resulting in consumers with reduced data protection and safety, delayed access to new features, and a divided, more complicated experience."

The Search Giant's Position

Android users can currently use third-party app stores - though commentators say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said the search company may have to "modify the interface" of downloading apps directly from websites, as well as "remove user frictions" when using third-party platforms.

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

The representative said "most" of Android users use alternative app stores or install applications straight from a creator's site, and asserted there is a far greater range of applications offered for Android users compared to those on iOS products.

"There are now 24,000 Google-compatible devices from thirteen hundred device makers globally, facing intense competition from iOS in the UK," the representative continued.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for free.

The company argues this means it promotes market competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping enterprises to innovate and giving customers more choice".

"Their dominance is now causing real harm by restricting choice for users and market rivalry for businesses," commented a policy expert.