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Apple may have to permit rivals to run separate app stores on Apple devices across Britain, after a decision from the competition regulator.

This represents a significant change to the company's infamous "walled garden" where apps can only be installed from its own official marketplace.

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - indicating they have significant control over smartphone ecosystems.

Regulatory Findings

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

But the regulator clarified it did not "determine or presume wrongdoing" from the companies.

"Mobile applications contributes one and a half percent of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these markets work well for business," stated a top executive from the CMA.

Approximately 90-100% of British smartphones operate using Apple or Google's mobile platforms, creating what the authority calls an "virtual monopoly".

According to current data, 48.5% 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 examined how dominant Apple and Google's own apps 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 earlier it published roadmaps outlining possible actions it could take.

These include requiring it to be easier for people to switch between iOS and Android devices, and for both firms to list applications "fairly and openly" in their app stores.

The Cupertino company particularly may be required to allow third-party marketplaces on its products, and let people to install apps straight from companies' websites.

This would follow a similar ruling in the European Union, which previously imposed measures against the company for anti-competitive behaviour.

Apple warned the United Kingdom could lose access to getting new features - as has happened in the EU - which the company attributes to strict rules.

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

"We encounters fierce competition in every sector where we operate, and we work tirelessly to create the best products, solutions and user experience," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a fragmented, less seamless experience."

Google's Position

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

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

"There appears to be no the justification for today's designation decision," a company policy executive remarked.

The executive said "most" of Google device owners use alternative app stores or install applications directly from a creator's site, and asserted there is a much wider selection of apps available for Google device owners versus those on Apple devices.

"Currently available are twenty-four thousand Google-compatible devices from 1,300 device makers globally, facing strong rivalry from iOS in the United Kingdom," the spokesperson added.

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

Google argues this means it opens up market competition.

But consumer groups said curbs on these companies' power in different nations "are already helping businesses to innovate and giving customers more choice".

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