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Apple could be required to allow competitors to operate separate app stores on iPhones across Britain, following a decision from the market watchdog.

This represents a significant change to the company's infamous "closed system" where applications can only be downloaded from the company's official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - indicating they have a lot of power over mobile platforms.

Regulatory Findings

The CMA said the two companies "may be limiting innovation and competition".

But the authority emphasized it did not "determine or presume misconduct" from the companies.

"Mobile applications generates 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's essential these sectors work well for enterprises," 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 recent analysis, nearly half of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.

The Company's Response

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

It is unclear what changes the authority will look to request, but earlier it published roadmaps outlining possible actions it could take.

These comprise requiring it to be easier for people to switch between Apple and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.

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

This would follow a similar ruling in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.

Apple cautioned the UK could face delays to getting new features - as has happened in the European Union - which the company attributes to heavy regulation.

For instance, some Apple Intelligence features which have been launched in other parts of the world are not accessible in the EU.

"We faces fierce competition in every market where we do business, and we work tirelessly to create the best products, solutions and user experience," the organization said in a statement.

"Britain's implementation of EU-style rules would undermine that, resulting in consumers with reduced data protection and safety, slower availability to latest functions, and a fragmented, less seamless experience."

Google's Position

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

The regulator's plan said the search company may have to "modify the interface" of installing applications directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the justification for today's designation decision," a Google policy executive remarked.

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

"There are now 24,000 Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative added.

Google's platform is an open-source operating system, which means creators can use and build on top of it for free.

The company contends this means it opens up market competition.

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

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