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Apple could be required to permit competitors to operate separate application platforms on iPhones in the UK, after a decision from the competition regulator.

This represents a significant change to the company's well-known "closed system" where apps can only be installed from the company's App Store.

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

Watchdog Assessment

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

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

"The app economy contributes 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's essential these sectors function properly for business," stated a top executive from the CMA.

Around ninety to one hundred percent of British smartphones run on Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

Based on current data, 48.5% of UK mobile owners use an iPhone - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

The Company's Reaction

The CMA's investigation examined how prominent the companies' own apps are compared with rivals - as well as their web applications and operating systems.

It is unclear what changes the authority will look to request, but previously it published guidelines detailing possible actions it could take.

These comprise mandating it to be easier for people to switch between Apple and Android devices, and for both companies 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 products, and enable people to download programs straight from companies' websites.

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

The technology firm cautioned the United Kingdom could lose access to getting new features - as has occurred in the EU - which the company attributes to strict rules.

For example, some AI features which have been rolled out in other parts of the world are not available in the European market.

"Apple encounters intense rivalry in every sector where we do business, and we strive continuously to create the finest offerings, services and customer interface," 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 divided, less seamless user journey."

Google's Position

Google device owners can presently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own Play Store.

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

"We simply do not see the justification for the current classification," a company policy executive remarked.

The representative said "the majority" of Android users use alternative app stores or download apps directly from a creator's site, and asserted there is a much wider selection of apps available for Android users compared to those on iOS products.

"Currently available are twenty-four thousand Google-compatible devices from thirteen hundred phone manufacturers worldwide, facing intense competition from Apple's platform in the UK," the spokesperson added.

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

Google argues this means it promotes market competition.

But advocacy organizations said curbs on these firms' dominance in other countries "currently assist enterprises to develop and providing consumers more options".

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