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The iPhone maker may have to permit rivals to run separate application platforms on iPhones across Britain, following a ruling from the market watchdog.

This represents a major shift to the company's infamous "walled garden" where applications can only be installed from its own official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - effectively saying they have a lot of power over smartphone ecosystems.

Watchdog Assessment

The regulator said the tech firms "could be restricting innovation and competition".

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

"The app economy contributes 1.5% of the British economy and sustains around 400,000 jobs, which is why it's essential these sectors work well for business," stated a senior official from the CMA.

Approximately 90-100% of UK mobile devices run on the two tech companies' operating systems, creating what the authority calls an "effective duopoly".

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

The Company's Reaction

The CMA's investigation focused on how dominant the companies' own applications are versus competitors - as well as their web applications and platform software.

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

These comprise mandating it to be easier for people to transition between iOS and Android phones, and for both companies to list applications "in a fair, objective and transparent manner" in their marketplaces.

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

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

The technology firm warned the United Kingdom could lose access to getting new features - as has happened in the EU - which the company blames on strict rules.

For example, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the EU.

"Apple encounters 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 statement.

"The UK's adoption of EU-style rules would weaken that, resulting in consumers with reduced data protection and security, slower availability to new features, and a divided, less seamless experience."

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 application marketplace.

The CMA's roadmap said Google may have to "change the user experience" of downloading apps directly from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for today's designation decision," a company policy executive stated.

The representative said "most" of Google device owners use alternative app stores or install applications straight from a developer's website, and claimed there is a much wider selection of applications available for Android users compared to those on iOS products.

"There are now twenty-four thousand Android phone models from 1,300 phone manufacturers globally, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson continued.

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

Google argues this means it promotes competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping enterprises to innovate and giving consumers more options".

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