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Apple could be required 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 Apple's infamous "walled garden" where apps can only be downloaded from the company's App Store.

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

Watchdog Findings

The regulator said the two companies "may be limiting progress and market rivalry".

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

"Mobile applications generates 1.5% of the British economy and supports around four hundred thousand positions, which is why it's crucial these markets function properly for enterprises," stated a senior official from the competition authority.

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

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

Apple's Reaction

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

It is unclear what modifications the regulator will seek to implement, but previously it published roadmaps outlining potential measures it could take.

These include mandating it to be more straightforward for people to switch between Apple and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be compelled to allow third-party marketplaces on its products, and enable people to download programs directly from companies' websites.

This would follow comparable regulations in the European Union, which previously imposed measures against Apple for restrictive practices.

Apple cautioned the UK could face delays to receiving updates - as has occurred in the European Union - which the organization attributes to heavy regulation.

For instance, some Apple Intelligence capabilities which have been launched in other regions are not accessible in the EU.

"Apple faces intense rivalry in every market where we do business, and we work tirelessly to create the finest offerings, services and user experience," the organization said in a release.

"Britain's implementation of EU-style rules would undermine that, resulting in consumers with reduced data protection and security, slower availability to latest functions, and a divided, more complicated experience."

The Search Giant's Position

Android users can currently use alternative marketplaces - though critics 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 "eliminate barriers" when using third-party platforms.

"We simply do not see the justification for the current classification," a company competition lead stated.

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

"There are now twenty-four thousand Android phone models from 1,300 device makers worldwide, facing intense competition from iOS in the UK," the representative added.

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

Google contends this means it opens up competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping enterprises to develop and giving customers more choice".

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