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Apple may have to allow rivals to run separate app stores on iPhones across Britain, following a ruling from the market watchdog.

This represents a major shift to Apple's infamous "closed system" where applications can only be installed from the company's official marketplace.

But the Competition and Markets Authority has classified 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 tech firms "may be limiting innovation and competition".

But the authority emphasized it did not "find or assume wrongdoing" from the firms.

"The app economy generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's crucial these sectors function properly for enterprises," stated a senior official from the CMA.

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

Based on current data, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

The Company's Reaction

The regulatory probe focused on how prominent the companies' own applications are compared with competitors - as well as their web applications and platform software.

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

These comprise requiring it to be more straightforward for people to switch between iOS and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

The Cupertino company particularly may be compelled to permit third-party marketplaces on its devices, and let people to download programs straight from companies' websites.

This would follow a similar ruling in the European Union, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm cautioned the UK could lose access to getting new features - as has occurred in the EU - which the organization blames on heavy regulation.

For instance, some Apple Intelligence capabilities which have been rolled out in other parts of the world are not available in the EU.

"We faces intense rivalry in every market where we operate, and we strive continuously to create the best products, services and user experience," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, resulting in consumers with weaker privacy and safety, slower availability to latest functions, and a divided, more complicated user journey."

The Search Giant's Position

Google device owners can presently use alternative marketplaces - though critics say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google may have to "change the user experience" of downloading apps directly 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 remarked.

The representative said "the majority" of Android users use alternative app stores or install applications directly from a creator's site, and claimed there is a far greater range of apps available for Android users compared to those on iOS products.

"There are now 24,000 Android phone models from thirteen hundred phone manufacturers worldwide, facing intense competition from Apple's platform in the UK," the spokesperson added.

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

Google contends this means it opens up market competition.

But advocacy organizations said curbs on these companies' power in different nations "are already helping businesses to innovate and giving consumers more options".

"Their dominance is now creating genuine problems by limiting options for consumers and competition for businesses," stated a consumer advocate.