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Apple may have to allow competitors to run their own application platforms on iPhones across Britain, following a ruling from the competition regulator.

This would be a major shift to Apple's infamous "walled garden" where apps can only be downloaded from its own App Store.

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - effectively saying they have a lot of power over smartphone ecosystems.

Regulatory Assessment

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 companies.

"Mobile applications contributes 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these markets work well for enterprises," stated a senior official from the CMA.

Around 90-100% of British smartphones run on Apple or Google's mobile platforms, creating what the authority calls an "effective duopoly".

Based on current data, 48.5% of British smartphone users use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the remaining users using the Android OS.

The Company's Response

The regulatory probe focused on how dominant the companies' own applications are versus competitors - as well as their browsers and operating systems.

It is unknown what changes 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 Apple and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple particularly may be compelled to allow third-party marketplaces on its devices, and let people to install apps directly from companies' websites.

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

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

For example, some AI features which have been launched in other parts of the world are not available in the EU.

"Apple faces intense rivalry in every market where we do business, and we strive continuously to create the finest offerings, solutions and customer interface," the organization said in a release.

"The UK's adoption of European regulations would undermine that, resulting in consumers with reduced data protection and security, slower availability to new features, and a fragmented, less seamless experience."

Google's Position

Android users can currently use alternative marketplaces - though commentators say they are not as user-friendly as the company's official application marketplace.

The CMA's roadmap said the search company may have to "modify the interface" of downloading apps 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 policy executive stated.

The representative said "most" of Android users use alternative app stores or install applications straight from a developer's website, and asserted there is a much wider selection of applications offered for Android users compared to those on Apple devices.

"There are now 24,000 Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative added.

Google's platform is an open-source operating system, which means creators can use and build on top of it for no cost.

The company argues this means it opens up competition.

But advocacy organizations said restrictions on these companies' power in different nations "are already helping businesses to innovate and providing customers more choice".

"The companies' control is now causing real harm by limiting options for consumers and market rivalry for businesses," commented a consumer advocate.