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The iPhone maker could be required to permit competitors to operate separate application platforms on iPhones across Britain, following a decision from the competition regulator.

This represents a major shift to Apple's infamous "closed system" where apps can only be downloaded from the company's App Store.

But the UK competition watchdog has classified both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Watchdog Findings

The CMA said the tech firms "could be restricting progress and competition".

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

"The app economy generates 1.5% of the UK's GDP and supports around 400,000 jobs, which is why it's essential these markets work well for enterprises," stated a senior official from the CMA.

Around 90-100% of UK mobile devices operate using Apple or Google's mobile platforms, creating what the authority calls an "virtual monopoly".

According to current data, nearly half of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

The Company's Reaction

The CMA's investigation focused on how dominant Apple and Google's own apps are compared with competitors - as well as their browsers and platform software.

It is unclear what changes the authority will seek to implement, but previously it published guidelines outlining potential measures it could take.

These include mandating it to be easier for people to transition between Apple and Android phones, and for both firms to list applications "fairly and openly" in their marketplaces.

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

This would follow a similar ruling in the EU, which previously imposed measures against Apple for restrictive practices.

The technology firm warned the UK could lose access to getting new features - as has happened in the EU - which the organization attributes to strict rules.

For example, some AI capabilities which have been rolled out in other regions are not accessible in the European market.

"Apple faces intense rivalry in every sector where we do business, and we work tirelessly to create the finest offerings, 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 latest functions, and a fragmented, more complicated user journey."

The Search Giant's Standpoint

Google device owners can presently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own Play Store.

The CMA's roadmap said Google may have to "change the user experience" of installing applications directly from online sources, as well as "eliminate barriers" when using third-party platforms.

"We simply do not see the justification for today's designation decision," a company competition lead remarked.

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

"Currently available are 24,000 Android phone models from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative continued.

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

Google contends this means it opens up competition.

But consumer groups said curbs on these companies' power in other countries "currently assist enterprises to develop and providing customers more choice".

"Their dominance is now creating genuine problems by restricting choice for users and competition for companies," commented a consumer advocate.