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The iPhone maker may have to permit rivals to operate their own application platforms on iPhones in the UK, after a ruling from the competition regulator.

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

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - indicating they have significant control over mobile platforms.

Regulatory Assessment

The regulator said the two companies "could be restricting progress and competition".

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

"The app economy generates one and a half percent of the UK's GDP and sustains around 400,000 jobs, which is why it's crucial these sectors work well for business," stated a top executive from the competition authority.

Approximately ninety to one hundred percent of British smartphones operate using Apple or Google's mobile platforms, creating what the authority calls an "effective duopoly".

Based on recent analysis, nearly half of UK mobile owners own an iPhone - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

The Company's Reaction

The regulatory probe focused on how prominent Apple and Google's own applications are versus rivals - as well as their web applications and platform software.

It is unknown what modifications the authority will look to request, but previously it published guidelines detailing potential measures it could take.

These comprise mandating it to be more straightforward for people to transition between iOS and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company specifically may be required to permit third-party marketplaces on its devices, and enable people to install apps straight from developer sites.

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

Apple cautioned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the company attributes to heavy regulation.

For example, some AI features which have been launched in other parts of the world are not available in the EU.

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

"The UK's adoption of EU-style rules would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a fragmented, less seamless user journey."

Google's Standpoint

Android users can currently use third-party app stores - though commentators say they are not as smooth 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 online sources, as well as "eliminate barriers" when using third-party platforms.

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

The executive said "the majority" of Android users use third-party platforms or download apps directly from a creator's site, and asserted there is a far greater range of applications offered for Google device owners versus those on iOS products.

"There are now twenty-four thousand Android phone models from 1,300 device makers globally, facing intense competition from Apple's platform in the United Kingdom," the representative added.

Android is an freely available software, which means developers can use and build on top of it for free.

The company contends this means it opens up competition.

But consumer groups said restrictions on these companies' power in different nations "are already helping enterprises to innovate and providing customers more choice".

"Their dominance is now creating genuine problems by limiting options for users and market rivalry for businesses," commented a policy expert.