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Apple may have to allow rivals to operate their own app stores on Apple devices across Britain, after a ruling from the market watchdog.

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

But the UK competition watchdog has classified both the tech giants as having "dominant market position" - indicating they have a lot of power over mobile platforms.

Regulatory Findings

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

But the authority emphasized it did not "determine or presume misconduct" from the firms.

"The app economy contributes 1.5% of the British economy and sustains around four hundred thousand positions, which is why it's essential these sectors function properly for business," commented a top executive from the CMA.

Around ninety to one hundred percent of British smartphones run on the two tech companies' operating systems, creating what the regulator calls an "virtual monopoly".

According to recent analysis, nearly half of UK mobile owners use an Apple device - which runs Apple's iOS - with the overwhelming bulk of the remaining users using the Android OS.

The Company's Reaction

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

It is unknown what modifications the authority will seek to implement, but previously it published guidelines detailing possible actions it could take.

These include requiring it to be easier for people to transition between iOS and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple particularly may be compelled to permit third-party marketplaces on its devices, and enable people to install apps straight from developer sites.

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

Apple warned the UK could face delays to receiving updates - as has happened in the European Union - which the company attributes to strict rules.

For instance, some AI features which have been launched in other regions are not accessible in the European market.

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

"Britain's implementation of European regulations would undermine that, resulting in consumers with reduced data protection and safety, delayed access to new features, and a divided, less seamless experience."

The Search Giant's Standpoint

Android users can presently use third-party app stores - though critics say they are not as smooth as Google's own application marketplace.

The regulator's plan said the search company may have to "modify the interface" of downloading apps 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 Google competition lead remarked.

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

"There are now twenty-four thousand Google-compatible devices from thirteen hundred phone manufacturers globally, facing intense competition from iOS in the UK," the spokesperson continued.

Android is an freely available software, which means developers can use and build on top of it for no cost.

Google argues this means it promotes competition.

But consumer groups said curbs on these companies' power in different nations "currently assist businesses to innovate and giving customers more options".

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