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Apple may have to permit competitors to run their own app stores on iPhones across Britain, following a ruling from the competition regulator.

This would be a significant change to Apple's infamous "closed system" where applications can only be downloaded from the company's App Store.

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Watchdog Findings

The regulator said the two companies "could be restricting progress and market rivalry".

But the authority clarified it did not "determine or presume wrongdoing" from the companies.

"The app economy generates one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's essential these markets work well for business," stated a senior official from the CMA.

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

Based on recent analysis, nearly half of UK mobile owners own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using the Android OS.

Apple's Response

The CMA's investigation examined how dominant Apple and Google's own apps are versus competitors - as well as their web applications and operating systems.

It is unclear what modifications the authority will seek to implement, but earlier it published roadmaps detailing possible actions it could take.

These comprise mandating it to be more straightforward for people to switch between Apple and Android phones, and for both companies to list applications "fairly and openly" in their app stores.

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

This would mirror comparable regulations in the EU, which previously took action against the company for anti-competitive behaviour.

Apple cautioned the UK could lose access to getting new features - as has occurred in the European Union - which the company blames on strict rules.

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

"We encounters intense rivalry in every market where we do business, and we work tirelessly to create the finest offerings, solutions and user experience," the organization said in a statement.

"The UK's adoption of EU-style rules would undermine that, resulting in consumers with reduced data protection and security, slower availability to latest functions, and a divided, less seamless user journey."

Google's Position

Google device owners can currently use third-party app stores - though commentators say they are not as smooth as Google's own Play Store.

The regulator's plan said Google may have to "change the user experience" of installing applications directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the justification for the current classification," a company policy executive remarked.

The executive said "the majority" of Google device owners use third-party platforms or download apps straight from a creator's site, and claimed there is a far greater range of apps offered for Google device owners versus those on iOS products.

"There are now twenty-four thousand Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from Apple's platform in the UK," the representative added.

Android is an open-source operating system, which means developers can use and build on top of it for no cost.

Google argues this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in different nations "currently assist businesses to develop and giving customers more options".

"Their dominance is now causing real harm by limiting options for consumers and competition for businesses," stated a consumer advocate.