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Apple may have to permit competitors to run their own application platforms on iPhones across Britain, following a ruling from the competition regulator.

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

But the Competition and Markets Authority has designated both the tech giants as having "strategic market status" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Assessment

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

But the regulator emphasized it did not "find or assume wrongdoing" from the firms.

"The app economy generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's essential these sectors function properly for enterprises," stated a senior official from the CMA.

Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

According to current data, 48.5% of British smartphone users own an Apple device - which runs Apple's iOS - with the vast majority of the rest using the Android OS.

Apple's Response

The CMA's investigation focused on how prominent the companies' own apps are versus rivals - as well as their web applications and operating systems.

It is unclear what modifications the authority will seek to implement, but earlier it published guidelines detailing potential measures it could take.

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

Apple specifically may be required to allow third-party marketplaces on its devices, and let people to install apps directly from developer sites.

This would mirror a similar ruling in the EU, which previously imposed measures against the company for anti-competitive behaviour.

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

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

"We faces fierce competition in every sector 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 European regulations would undermine that, leaving users with weaker privacy and safety, delayed access to new features, and a fragmented, less seamless experience."

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 application marketplace.

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

"There appears to be no the rationale for the current classification," a Google policy executive stated.

The executive said "the majority" of Google device owners use alternative app stores or install applications directly from a creator's site, and asserted there is a much wider selection of applications offered for Android users compared to those on iOS products.

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing intense competition from Apple's platform in the UK," the spokesperson continued.

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

Google contends this means it opens up market competition.

But consumer groups said restrictions 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 restricting choice for users and competition for companies," commented a policy expert.