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Apple may have to permit competitors to operate separate app stores on iPhones across Britain, following a ruling from the market watchdog.

This would be a major shift to the company's infamous "walled garden" where apps can only be downloaded from the company's official marketplace.

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 mobile platforms.

Watchdog Assessment

The CMA said the tech firms "could be restricting progress and market rivalry".

But the regulator clarified it did not "determine or presume misconduct" from the firms.

"The app economy 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 work well for enterprises," commented a senior official from the competition authority.

Around 90-100% of UK mobile devices run on the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

According to recent analysis, nearly half of British smartphone users own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.

Apple's Reaction

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

It is unclear what changes the authority will seek to implement, but earlier it published guidelines outlining possible actions it could take.

These comprise mandating it to be more straightforward for people to switch between iOS and Android phones, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.

Apple specifically may be compelled to allow alternative app stores on its products, and let people to install apps straight from companies' websites.

This would follow a similar ruling in the EU, which previously took action against the company for restrictive practices.

The technology firm warned the United Kingdom could face delays to receiving updates - as has occurred in the EU - which the company attributes to strict rules.

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

"Apple faces fierce competition in every sector where we do business, and we work tirelessly to create the best products, services and customer interface," the organization said in a release.

"Britain's implementation of EU-style rules would weaken that, leaving users with reduced data protection and safety, slower availability to latest functions, and a divided, more complicated experience."

The Search Giant's Position

Android users can presently use third-party app stores - though commentators say they are not as user-friendly as the company's official application marketplace.

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

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

The representative said "most" of Google device owners use third-party platforms or install applications straight from a developer's website, and asserted there is a much wider selection of applications available for Google device owners versus those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from 1,300 phone manufacturers worldwide, facing intense competition from iOS in the United Kingdom," the spokesperson continued.

Google's platform is an freely available software, which means creators can use and build on top of it for free.

Google argues this means it promotes market competition.

But consumer groups said restrictions on these firms' dominance in other countries "currently assist businesses to develop and providing consumers more options".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for companies," commented a consumer advocate.