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The iPhone maker could be required to allow competitors to run their own app stores on Apple devices in the UK, after a ruling from the market watchdog.

This would be a significant change to Apple's infamous "closed system" where apps can only be downloaded from the company's official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - indicating they have a lot of power over smartphone ecosystems.

Regulatory Assessment

The regulator said the two companies "may be limiting progress and competition".

But the regulator clarified it did not "find or assume misconduct" from the companies.

"Mobile applications contributes 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these sectors work well for business," commented a top executive from the competition authority.

Approximately ninety to one hundred percent of UK mobile devices run on the two tech companies' operating systems, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the remaining users using the Android OS.

Apple's Reaction

The CMA's investigation examined how dominant the companies' own apps are versus competitors - as well as their browsers and platform software.

It is unknown what changes the authority will seek to implement, but previously it published roadmaps detailing potential measures it could take.

These comprise requiring it to be more straightforward for people to transition between iOS and Android devices, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company specifically may be compelled to allow alternative app stores on its devices, and let people to download programs straight from developer sites.

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

The technology firm warned the United Kingdom could face delays 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 available in the EU.

"We encounters intense rivalry in every sector where we do business, and we strive continuously to create the best products, solutions and customer interface," the company said in a statement.

"The UK's adoption of European regulations would undermine that, resulting in consumers with weaker privacy and safety, slower availability to latest functions, and a divided, more complicated user journey."

Google's Position

Android users can currently 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 websites, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the rationale for today's designation decision," a company competition lead stated.

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

"There are now 24,000 Android phone models from thirteen hundred device makers globally, facing strong rivalry from Apple's platform in the UK," the spokesperson continued.

Android is an freely available software, which means creators can utilize and develop on top of it for no cost.

Google contends this means it promotes market competition.

But advocacy organizations said restrictions on these firms' dominance in other countries "currently assist businesses to innovate and providing customers more options".

"Their dominance is now causing real harm by restricting choice for consumers and market rivalry for businesses," stated a policy expert.