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The iPhone maker may have to allow competitors to operate separate application platforms on iPhones across Britain, after 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 official marketplace.

But the UK competition watchdog has classified both the tech giants as having "strategic market status" - effectively saying they have a lot of power over mobile platforms.

Watchdog Assessment

The CMA said the two companies "may be limiting progress and competition".

But the authority emphasized it did not "determine or presume wrongdoing" from the firms.

"Mobile applications contributes one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's crucial these sectors function properly for enterprises," commented a top executive from the CMA.

Approximately ninety to one hundred percent of British smartphones operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, nearly half of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using Google's Android.

The Company's Reaction

The CMA's investigation focused on how prominent Apple and Google's own applications are versus competitors - as well as their web applications and platform software.

It is unknown what modifications the regulator will look to request, but previously it published guidelines outlining possible actions it could take.

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

The Cupertino company particularly may be compelled to allow alternative app stores on its devices, and let people to install apps straight from companies' websites.

This would mirror a similar ruling in the European Union, which previously took action against Apple for anti-competitive behaviour.

The technology firm cautioned the United Kingdom could face delays to getting new features - as has occurred in the EU - which the company attributes to strict rules.

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

"Apple faces intense rivalry in every market where we do business, and we strive continuously to create the best products, services and customer interface," the organization said in a release.

"The UK's adoption of European regulations would undermine that, resulting in consumers with weaker privacy and security, slower availability to latest functions, and a fragmented, less seamless experience."

Google's Position

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

The regulator's plan said Google may have to "modify the interface" of installing applications directly from online sources, as well as "remove user frictions" when using alternative app stores.

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

The representative said "most" of Android users use alternative app stores or install applications straight from a creator's site, and claimed there is a far greater range of applications available for Google device owners compared to those on iOS products.

"Currently available are 24,000 Android phone models from 1,300 device makers globally, facing strong rivalry from iOS in the UK," the spokesperson continued.

Android is an open-source operating system, which means developers can utilize and develop on top of it for no cost.

Google argues this means it promotes market competition.

But advocacy organizations said curbs on these companies' power in other countries "currently assist enterprises to develop and providing customers more choice".

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