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Apple may have to allow competitors to run separate app stores on iPhones across Britain, after a ruling from the competition regulator.

This represents a major shift to Apple's well-known "closed system" where applications 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 significant control over smartphone ecosystems.

Regulatory Findings

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

But the regulator emphasized it did not "determine or presume misconduct" from the firms.

"The app economy contributes one and a half percent of the British economy and supports around 400,000 jobs, which is why it's essential these markets work well for enterprises," stated a top executive from the competition authority.

Around ninety to one hundred percent of British smartphones operate using the two tech companies' operating systems, creating what the authority calls an "effective duopoly".

Based on current data, 48.5% of UK mobile owners own an iPhone - which runs Apple's iOS - with the vast majority of the rest using the Android OS.

The Company's Response

The CMA's investigation examined how prominent Apple and Google's own applications are versus rivals - as well as their browsers and operating systems.

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

These include mandating it to be easier for people to transition between iOS and Android phones, and for both companies to list applications "fairly and openly" in their app stores.

Apple particularly may be compelled to allow alternative app stores on its devices, and enable people to install apps straight from developer sites.

This would mirror comparable regulations in the EU, which previously took action against the company for anti-competitive behaviour.

The technology firm warned the United Kingdom could face delays to receiving updates - as has occurred in the European Union - which the company blames on strict rules.

For example, some Apple Intelligence capabilities which have been rolled out in other regions are not accessible in the European market.

"We faces intense rivalry in every sector where we operate, and we work tirelessly to create the best products, solutions and customer interface," the company said in a release.

"Britain's implementation of EU-style rules would weaken that, resulting in consumers with reduced data protection and security, slower availability to latest functions, and a fragmented, more complicated user journey."

The Search Giant's Position

Android users can presently use third-party app stores - though commentators say they are not as smooth as Google's own Play Store.

The CMA's roadmap said Google may have to "change the user experience" of downloading apps straight from websites, as well as "eliminate barriers" when using third-party platforms.

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

The executive said "most" of Android users use third-party platforms or install applications directly from a developer's website, and claimed there is a much wider selection of apps available for Android users compared to those on Apple devices.

"Currently available are 24,000 Android phone models from 1,300 phone manufacturers globally, facing strong rivalry from iOS in the United Kingdom," the spokesperson continued.

Google's platform is an freely available software, which means developers can utilize and develop on top of it for no cost.

The company contends this means it promotes market competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping businesses to innovate and providing consumers more choice".

"The companies' control is now creating genuine problems by limiting options for users and competition for businesses," commented a consumer advocate.