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Apple could be required to allow competitors to run their own application platforms on iPhones in the UK, after a ruling from the competition regulator.

This would be a significant change to the company's infamous "walled garden" where apps can only be installed from the company's App Store.

But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Watchdog Assessment

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

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

"The app economy generates one and a half percent 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 top executive from the competition authority.

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

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 remaining users using Google's Android.

Apple's Response

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

It is unknown what modifications the regulator will seek to implement, but previously it published roadmaps outlining possible actions it could take.

These comprise requiring it to be more straightforward for people to transition between iOS and Android devices, and for both firms to rank apps "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company specifically may be required to permit third-party marketplaces on its devices, and enable people to download programs straight from companies' websites.

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

The technology firm cautioned the UK could face delays to receiving updates - as has happened in the European Union - which the organization blames on strict rules.

For instance, some AI features which have been launched in other regions are not available in the European market.

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

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

Google's Standpoint

Google device owners can presently use alternative marketplaces - though critics say they are not as smooth 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 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 company policy executive stated.

The executive said "the majority" of Google device owners use third-party platforms or download apps straight from a developer's website, and asserted there is a far greater range of applications offered for Google device owners compared to those on Apple devices.

"Currently available are 24,000 Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the UK," the spokesperson added.

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

Google contends this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in different nations "are already helping enterprises to develop and giving customers more options".

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