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Apple could be required to allow rivals to operate their own application platforms on Apple devices across Britain, following a decision from the competition regulator.

This would be a major shift to the company's infamous "closed system" where apps can only be installed from its own App Store.

But the Competition and Markets Authority has designated both Apple and Google as having "strategic market status" - effectively saying they have a lot of power over mobile platforms.

Regulatory Assessment

The regulator said the two companies "may be limiting innovation and market rivalry".

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

"The app economy generates 1.5% of the UK's GDP and supports around 400,000 jobs, which is why it's essential these sectors work well for business," commented a top executive from the competition authority.

Approximately 90-100% of UK mobile devices operate using the two tech companies' operating systems, creating what the authority calls an "effective duopoly".

According to recent analysis, nearly half of UK mobile owners own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the remaining users using the Android OS.

Apple's Response

The CMA's investigation focused on how prominent Apple and Google's own apps are compared with rivals - as well as their web applications and operating systems.

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

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

The Cupertino company particularly may be compelled to permit alternative app stores on its devices, and enable people to install apps directly from companies' websites.

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

Apple warned the United Kingdom could lose access to receiving updates - as has happened in the European Union - which the company blames on strict rules.

For instance, some Apple Intelligence features which have been rolled out in other regions are not accessible in the EU.

"Apple faces intense rivalry in every market where we operate, and we strive continuously to create the best products, solutions and customer interface," the company said in a release.

"The UK's adoption of European regulations would weaken that, leaving users with weaker privacy and security, slower availability to new features, and a fragmented, more complicated experience."

Google's Standpoint

Google device owners can presently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.

The regulator's plan said the search company may have to "change the user experience" of downloading apps straight from online sources, as well as "remove user frictions" when using third-party platforms.

"We simply do not see the rationale for the current classification," a Google competition lead stated.

The representative said "most" of Google device owners use alternative app stores or download apps straight from a creator's site, and asserted there is a far greater range of apps available for Android users compared to those on Apple devices.

"There are now twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry 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.

Google argues this means it opens up competition.

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

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for companies," stated a policy expert.