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Apple may have to allow rivals to operate their own app stores on Apple devices across Britain, following a ruling from the market watchdog.

This represents a significant change to the company's well-known "closed system" where applications can only be installed from its own official marketplace.

But the Competition and Markets Authority has designated both Apple and Google as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Regulatory Findings

The regulator said the tech firms "may be limiting innovation and competition".

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

"Mobile applications contributes 1.5% of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these sectors work well for business," stated a top executive from the CMA.

Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

Based on current data, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the vast majority of the rest using Google's Android.

The Company's Reaction

The regulatory probe focused on how dominant Apple and Google's own applications are compared with rivals - as well as their browsers and platform software.

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

These include mandating it to be easier for people to switch between iOS and Android phones, and for both firms to rank apps "fairly and openly" in their marketplaces.

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

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

Apple warned the UK could lose access to getting new features - as has occurred in the EU - which the company attributes to heavy regulation.

For example, some AI features which have been rolled out in other parts of the world are not accessible in the European market.

"We faces intense rivalry in every market where we do business, and we work tirelessly to create the best products, services and user experience," the organization said in a statement.

"Britain's implementation of European regulations would undermine that, leaving users with weaker privacy and security, delayed access to latest functions, and a divided, less seamless user journey."

Google's Standpoint

Google device owners can currently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap 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 rationale for the current classification," a company competition lead stated.

The representative said "most" of Android users use third-party platforms or install applications directly from a developer's website, and claimed there is a far greater range of applications available for Android users compared to those on Apple devices.

"There are now twenty-four thousand Android phone models from thirteen hundred device makers worldwide, facing intense competition from Apple's platform in the United Kingdom," the spokesperson continued.

Android is an freely available software, which means creators can utilize and develop on top of it for no cost.

The company contends this means it opens up market competition.

But advocacy organizations said curbs on these firms' dominance in other countries "currently assist enterprises to develop and giving customers more choice".

"The companies' control is now creating genuine problems by limiting options for consumers and competition for businesses," stated a policy expert.