Apple may be forced to allow rival application marketplaces within the United Kingdom.
Apple could be required to allow rivals to operate their own application platforms on Apple devices across Britain, after a ruling from the market watchdog.
This represents a major shift to the company's well-known "walled garden" where apps can only be installed from its own App Store.
But the Competition and Markets Authority has classified both Apple and Google as having "dominant market position" - effectively saying they have significant control over smartphone ecosystems.
Watchdog Findings
The regulator said the tech firms "may be limiting progress and competition".
But the authority clarified it did not "determine or presume misconduct" from the firms.
"The app economy contributes one and a half percent of the UK's GDP 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 ninety to one hundred percent of UK mobile devices operate using Apple or Google's mobile platforms, 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 overwhelming bulk of the rest using Google's Android.
The Company's Response
The regulatory probe examined how prominent Apple and Google's own apps are compared with competitors - as well as their web applications and operating systems.
It is unknown what modifications the regulator will seek to implement, but previously it published guidelines outlining potential measures it could take.
These comprise requiring it to be more straightforward for people to transition between Apple and Android devices, and for both companies to list applications "fairly and openly" in their marketplaces.
The Cupertino company particularly may be required to permit third-party marketplaces on its devices, and let people to download programs straight from developer sites.
This would mirror a similar ruling in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.
Apple warned the UK could lose access to getting new features - as has happened in the EU - which the organization attributes to strict rules.
For instance, some Apple Intelligence capabilities which have been rolled out in other parts of the world are not available in the EU.
"Apple faces fierce competition in every market where we operate, and we strive continuously to create the best products, solutions and customer interface," the company said in a release.
"The UK's adoption of European regulations would weaken that, leaving users with weaker privacy and safety, delayed access to new features, and a fragmented, less seamless user journey."
The Search Giant's Standpoint
Google device owners can presently use third-party app stores - though critics say they are not as smooth as Google's own application marketplace.
The CMA's roadmap said Google may have to "change the user experience" of installing applications directly from websites, as well as "eliminate barriers" when using alternative app stores.
"We simply do not see the justification for the current classification," a company competition lead remarked.
The representative said "the majority" of Android users use third-party platforms or install applications directly from a developer's website, and asserted there is a far greater range of applications available for Google device owners versus those on iOS products.
"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from Apple's platform in the United Kingdom," the representative continued.
Google's platform is an freely available software, which means developers can utilize and develop on top of it for free.
The company contends this means it promotes competition.
But advocacy organizations said restrictions on these companies' power in other countries "currently assist enterprises to innovate and giving customers more options".
"Their dominance is now causing real harm by limiting options for consumers and market rivalry for companies," stated a policy expert.