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Apple may have to allow competitors to run separate app stores on iPhones across Britain, after a decision from the market watchdog.

This would be a major shift to Apple's infamous "closed system" where applications can only be downloaded from its own official marketplace.

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

Regulatory Findings

The CMA said the tech firms "may be limiting innovation and market rivalry".

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

"Mobile applications contributes 1.5% of the British economy and supports around 400,000 jobs, which is why it's essential these sectors work well for business," stated a top executive from the competition authority.

Around 90-100% of British smartphones run on the two tech companies' mobile platforms, creating what the authority calls an "effective duopoly".

According to current data, 48.5% of UK mobile owners own an iPhone - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

Apple'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 previously it published roadmaps outlining possible actions it could take.

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

The Cupertino company specifically may be required to allow alternative app stores on its devices, and enable people to install apps directly from developer sites.

This would mirror comparable regulations in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.

Apple warned the UK could lose access to receiving updates - as has occurred in the EU - which the company blames on strict rules.

For instance, some Apple Intelligence capabilities which have been launched in other regions are not accessible in the European market.

"We encounters fierce competition in every sector where we do business, and we work tirelessly to create the best products, services and user experience," the organization said in a release.

"The UK's adoption of EU-style rules would weaken that, leaving users with reduced data protection and security, delayed access to latest functions, and a fragmented, less seamless experience."

The Search Giant's Standpoint

Google device owners can presently use third-party app stores - though commentators say they are not as user-friendly as the company's official Play Store.

The regulator's plan said Google may have to "modify the interface" of downloading apps directly from websites, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the justification for the current classification," a company competition lead stated.

The executive said "most" of Google device owners use alternative app stores or install applications directly from a creator's site, and claimed there is a far greater range of applications available for Android users compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from thirteen hundred device makers globally, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson added.

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

Google argues this means it promotes market competition.

But consumer groups said curbs on these firms' dominance in other countries "are already helping enterprises to innovate and providing customers more options".

"Their dominance is now creating genuine problems by restricting choice for consumers and market rivalry for businesses," stated a consumer advocate.