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Apple may have to allow rivals to operate separate app stores on Apple devices across Britain, following a decision from the competition regulator.

This would be a major shift to Apple's well-known "walled garden" where apps can only be downloaded from its own App Store.

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 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 British economy and sustains around 400,000 jobs, which is why it's crucial these sectors work well for business," commented a senior official from the competition authority.

Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

Based on current data, 48.5% of British smartphone users own an iPhone - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

The Company's Response

The regulatory probe examined how prominent the companies' own apps are compared with rivals - as well as their web applications and platform software.

It is unclear what changes the regulator will seek to implement, but previously it published roadmaps outlining 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 app stores.

Apple particularly may be required to allow alternative app stores on its devices, and enable people to install apps directly from companies' websites.

This would follow a similar ruling in the EU, which previously imposed measures against the company for restrictive practices.

The technology firm cautioned the UK could lose access to getting new features - as has happened in the EU - which the organization blames on strict rules.

For instance, some AI features which have been rolled out in other regions are not available in the EU.

"Apple encounters intense rivalry in every sector where we operate, and we strive continuously to create the best products, services and customer interface," the company said in a release.

"Britain's implementation of European regulations would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a divided, less seamless user journey."

The Search Giant's Position

Google device owners can presently use alternative marketplaces - though commentators say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google 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 rationale for the current classification," a company policy executive stated.

The executive said "most" of Google device owners use third-party platforms or install applications straight from a developer's website, and asserted there is a far greater range of apps available for Google device owners versus those on iOS products.

"There are now 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from iOS in the UK," the spokesperson added.

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

The company argues this means it opens up competition.

But consumer groups said curbs on these firms' dominance in other countries "are already helping businesses to develop and providing consumers more options".

"The companies' control is now causing real harm by limiting options for consumers and competition for businesses," stated a policy expert.