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The iPhone maker could be required to permit competitors to run their own app stores on iPhones across Britain, following a decision from the market watchdog.

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

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Assessment

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

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

"Mobile applications generates one and a half percent of the British economy and sustains around four hundred thousand positions, which is why it's essential these markets function properly for business," commented a top executive from the competition authority.

Approximately 90-100% of UK mobile devices operate using the two tech companies' mobile platforms, creating what the authority calls an "effective duopoly".

According to recent analysis, 48.5% of British smartphone users own an iPhone - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

The Company's Response

The regulatory probe focused on how prominent Apple and Google's own applications are versus competitors - as well as their web applications and operating systems.

It is unknown what changes the regulator will look to request, but previously it published roadmaps outlining potential measures it could take.

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

Apple particularly may be required to permit third-party marketplaces on its devices, and let people to download programs directly from developer sites.

This would follow comparable regulations in the EU, which previously took action against Apple for restrictive practices.

The technology firm warned the UK could face delays to getting new features - as has occurred in the EU - which the organization blames on heavy regulation.

For instance, some Apple Intelligence features which have been launched in other regions are not available in the European market.

"Apple faces fierce competition in every market where we operate, and we strive continuously to create the finest offerings, solutions and user experience," the organization said in a statement.

"The UK's adoption of European regulations would weaken that, leaving users with weaker privacy and security, slower availability to new features, and a divided, less seamless user journey."

Google's Standpoint

Android users can presently use third-party app stores - though commentators say they are not as user-friendly as Google's own Play Store.

The regulator's plan said the search company may have to "change the user experience" of downloading apps straight from online sources, as well as "remove user frictions" when using third-party platforms.

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

The representative said "the majority" of Google device owners use third-party platforms or download apps directly from a creator's site, and asserted there is a far greater range of applications available for Android users compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from thirteen hundred device makers globally, facing strong rivalry from iOS in the UK," the representative continued.

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

Google contends this means it promotes market competition.

But consumer groups said restrictions on these companies' power in different nations "currently assist businesses to develop and providing consumers more choice".

"Their dominance is now creating genuine problems by limiting options for users and competition for companies," stated a policy expert.