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

This would be a significant change to Apple's infamous "walled garden" where applications can only be downloaded from the company's official marketplace.

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

Watchdog Findings

The regulator said the two companies "may be limiting innovation and market rivalry".

But the authority clarified it did not "find or assume wrongdoing" from the companies.

"Mobile applications generates 1.5% of the British economy and sustains around 400,000 jobs, which is why it's crucial these sectors function properly for business," stated a top executive from the CMA.

Approximately 90-100% of British smartphones operate using the two tech companies' operating systems, creating what the regulator calls an "virtual monopoly".

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

Apple's Reaction

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

It is unclear what changes the regulator 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 firms to list applications "fairly and openly" in their marketplaces.

The Cupertino company particularly may be compelled to permit alternative app stores on its devices, and let people to install apps straight from companies' websites.

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

Apple cautioned the UK could lose access to getting new features - as has occurred in the European Union - which the organization attributes to heavy regulation.

For example, some Apple Intelligence capabilities which have been launched 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 strive continuously to create the finest offerings, solutions and customer interface," the organization said in a statement.

"Britain's implementation of European regulations would weaken that, resulting in consumers with reduced data protection and safety, slower availability to latest functions, and a fragmented, more complicated experience."

The Search Giant's Standpoint

Android users can currently use third-party app stores - though commentators say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of installing applications straight from online sources, as well as "remove user frictions" when using third-party platforms.

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

The representative said "the majority" of Android users use third-party platforms or download apps straight from a developer's website, and claimed there is a much wider selection of apps available for Google device owners compared to those on Apple devices.

"Currently available are twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing intense competition from Apple's platform in the UK," the representative added.

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

Google contends this means it promotes market competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping businesses to develop and giving customers more options".

"Their dominance is now causing real harm by limiting options for consumers and competition for businesses," stated a policy expert.