Apple may have to allow rivals to run their own app stores on iPhones across Britain, after a decision from the competition regulator.
This represents a significant change to Apple's well-known "closed system" where applications can only be downloaded from the company's official marketplace.
But the UK competition watchdog has classified both Apple and Google as having "dominant market position" - effectively saying they have a lot of power over mobile platforms.
Regulatory Assessment
The regulator said the two companies "could be restricting innovation and market rivalry".
But the authority 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 supports around four hundred thousand positions, which is why it's essential these markets work well for enterprises," commented a senior official from the CMA.
Approximately 90-100% of British smartphones run on the two tech companies' operating systems, creating what the regulator calls an "effective duopoly".
Based on recent analysis, 48.5% of British smartphone users own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.
The Company's Reaction
The CMA's investigation focused on how dominant Apple and Google's own apps are compared with rivals - as well as their browsers and operating systems.
It is unknown what changes the authority will look to request, but earlier it published roadmaps outlining potential measures it could take.
These comprise mandating it to be easier for people to switch between Apple and Android phones, and for both firms to rank apps "fairly and openly" in their marketplaces.
The Cupertino company specifically may be required to allow third-party marketplaces on its products, and let people to download programs directly from developer sites.
This would follow comparable regulations in the EU, which previously imposed measures against the company for anti-competitive behaviour.
Apple cautioned the UK could face delays to getting new features - as has occurred in the European Union - which the company blames on heavy regulation.
For example, some Apple Intelligence features which have been launched in other regions are not available in the European market.
"We encounters fierce competition in every market where we do business, and we work tirelessly to create the finest offerings, solutions and user experience," the company said in a release.
"The UK's adoption of European regulations would weaken that, resulting in consumers with reduced data protection and security, slower availability to new features, and a divided, less seamless user journey."
Google's Standpoint
Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as Google's own application marketplace.
The regulator's plan said the search company may have to "change the user experience" of downloading apps directly from websites, as well as "eliminate barriers" when using third-party platforms.
"There appears to be no the justification for today's designation decision," a company competition lead stated.
The executive said "most" of Android users use alternative app stores or install applications straight from a creator's site, and asserted there is a much wider selection of apps available for Android users versus those on Apple devices.
"There are now twenty-four thousand Android phone models from thirteen hundred device makers globally, facing intense competition from iOS in the UK," the representative added.
Android is an open-source operating system, which means creators can use and build on top of it for no cost.
The company argues this means it promotes market competition.
But consumer groups said curbs on these firms' dominance in other countries "currently assist businesses to develop and giving customers more options".
"The companies' control is now causing real harm by restricting choice for users and market rivalry for companies," stated a policy expert.
