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Apple may have to permit rivals to run their own app stores on Apple devices in the UK, following a ruling from the competition regulator.

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

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - effectively saying they have significant control over mobile platforms.

Regulatory Findings

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

But the regulator clarified it did not "find or assume wrongdoing" from the firms.

"Mobile applications generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," stated a top executive from the CMA.

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

Based on recent analysis, 48.5% of UK mobile owners use an iPhone - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

Apple's Response

The CMA's investigation focused on how dominant Apple and Google's own applications are compared with rivals - as well as their browsers and operating systems.

It is unclear what changes the authority will look to request, but earlier it published roadmaps detailing possible actions it could take.

These comprise requiring it to be more straightforward for people to transition between iOS and Android phones, and for both companies to list applications "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company particularly may be compelled to permit third-party marketplaces on its products, and enable people to download programs directly from companies' websites.

This would follow a similar ruling in the European Union, which previously imposed measures against the company for anti-competitive behaviour.

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

For example, some Apple Intelligence features which have been rolled out in other parts of the world are not accessible in the EU.

"We faces fierce competition in every sector where we do business, and we work tirelessly to create the finest offerings, services and user experience," the company said in a statement.

"Britain's implementation of European regulations would weaken that, leaving users with reduced data protection and security, delayed access to new features, and a fragmented, more complicated user journey."

Google's Standpoint

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

The CMA's roadmap said the search company may have to "modify the interface" of installing applications straight from websites, as well as "remove user frictions" when using alternative app stores.

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

The executive said "the majority" of Android users use alternative app stores or download apps straight from a creator's site, and asserted there is a much wider selection of applications available for Google device owners compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from iOS in the UK," the representative continued.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for free.

Google contends this means it promotes market competition.

But consumer groups said curbs on these firms' dominance in different nations "are already helping enterprises to innovate and providing customers more options".

"The companies' control is now causing real harm by restricting choice for users and competition for businesses," stated a policy expert.