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

This represents a major shift to Apple's infamous "walled garden" where apps can only be installed from the company's official marketplace.

But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Regulatory Assessment

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

But the regulator emphasized it did not "find or assume wrongdoing" from the companies.

"Mobile applications contributes 1.5% of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these sectors function properly for business," stated a senior official from the competition authority.

Approximately 90-100% of UK mobile devices operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

According to recent analysis, 48.5% of British smartphone users own an iPhone - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

The Company's Response

The CMA's investigation focused on how prominent the companies' own apps are versus rivals - as well as their browsers and operating systems.

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

These include requiring it to be easier for people to switch between Apple and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company particularly may be required to permit alternative app stores on its devices, and enable people to download programs straight from companies' websites.

This would follow comparable regulations in the EU, which previously imposed measures against the company for restrictive practices.

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

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

"We encounters fierce competition in every market where we do business, and we strive continuously to create the best products, services 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 security, delayed access to latest functions, and a fragmented, more complicated user journey."

The Search Giant's Position

Android users can presently 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 Google may have to "modify the interface" of downloading apps straight from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for today's designation decision," a Google policy executive stated.

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

"Currently available are 24,000 Google-compatible devices from thirteen hundred device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative added.

Android is an open-source operating system, which means creators can utilize and develop on top of it for no cost.

The company contends this means it opens up market competition.

But consumer groups said curbs on these firms' dominance in different nations "currently assist businesses to innovate and providing consumers more options".

"The companies' control is now creating genuine problems by restricting choice for consumers and competition for companies," stated a consumer advocate.