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

This represents a major shift to Apple's infamous "closed system" where apps can only be downloaded from the company's App Store.

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

Regulatory Findings

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

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

"Mobile applications generates 1.5% of the British economy and supports around 400,000 jobs, which is why it's crucial these markets function properly for enterprises," commented a senior official from the competition authority.

Approximately ninety to one hundred percent of UK mobile devices run on Apple or Google's mobile platforms, creating what the authority calls an "virtual monopoly".

According to current data, nearly half of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

Apple's Reaction

The regulatory probe focused on how dominant Apple and Google's own apps are versus rivals - as well as their web applications and operating systems.

It is unknown what modifications the authority will look to request, but earlier it published roadmaps detailing possible actions it could take.

These comprise requiring it to be easier for people to switch between Apple and Android phones, and for both firms to list applications "fairly and openly" in their marketplaces.

The Cupertino company particularly may be compelled to permit third-party marketplaces on its products, and let people to install apps directly from developer sites.

This would follow comparable regulations in the EU, which previously imposed measures against the company for anti-competitive behaviour.

Apple warned the UK could face delays to getting new features - as has happened in the EU - which the organization attributes to heavy regulation.

For instance, some AI features which have been launched in other regions are not available in the EU.

"Apple faces fierce competition in every market where we operate, and we work tirelessly to create the finest offerings, services and customer interface," the company said in a statement.

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

Google's Position

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

The regulator's plan said the search company may have to "change the user experience" of downloading apps straight from online sources, as well as "eliminate barriers" when using third-party platforms.

"We simply do not see the justification for today's designation decision," a company competition lead remarked.

The representative said "most" of Google device owners use third-party platforms or download apps straight from a developer's website, and claimed there is a far greater range of applications offered for Google device owners versus those on Apple devices.

"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers worldwide, facing strong rivalry from iOS in the United Kingdom," 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.

The company argues this means it promotes competition.

But consumer groups said restrictions on these firms' dominance in different nations "currently assist businesses to innovate and giving customers more options".

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