Apple may be forced to permit rival application marketplaces in UK.
Apple could be required to permit rivals to operate their own application platforms on Apple devices in the UK, after a ruling from the market watchdog.
This would be a significant change to the company's infamous "walled garden" where apps can only be downloaded from its own App Store.
But the UK competition watchdog has classified both Apple and Google as having "strategic market status" - effectively saying they have a lot of power over mobile platforms.
Watchdog Assessment
The CMA said the two companies "could be restricting innovation and market rivalry".
But the authority clarified it did not "find or assume wrongdoing" from the firms.
"The app economy generates 1.5% of the British economy and sustains around 400,000 jobs, which is why it's essential these markets work well for business," commented a senior official from the CMA.
Approximately ninety to one hundred percent of British smartphones run on Apple or Google's operating systems, creating what the authority calls an "effective duopoly".
According to recent analysis, nearly half of UK mobile owners own an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.
The Company's Response
The CMA's investigation examined how prominent 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 guidelines detailing potential measures it could take.
These comprise requiring it to be more straightforward for people to switch between Apple and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their marketplaces.
Apple specifically may be required to permit alternative app stores on its devices, and let people to download programs straight from companies' websites.
This would mirror comparable regulations in the EU, which previously took action against the company for restrictive practices.
The technology firm warned the United Kingdom could face delays to receiving updates - as has happened in the European Union - which the organization blames on strict rules.
For example, some Apple Intelligence features which have been launched in other parts of the world are not available in the European market.
"We faces intense rivalry in every market where we operate, and we strive continuously 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, delayed access to latest functions, and a divided, more complicated user journey."
Google's Standpoint
Android users can presently use third-party app stores - though commentators say they are not as smooth as the company's official application marketplace.
The regulator's plan said Google may have to "modify the interface" 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 representative said "the majority" of Android users use third-party platforms or install applications straight from a developer's website, and asserted there is a far greater range of applications offered for Android users compared to those on Apple devices.
"There are now twenty-four thousand Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from Apple's platform in the UK," the representative continued.
Google's platform is an open-source operating system, which means developers can use and build on top of it for free.
Google contends this means it promotes market competition.
But advocacy organizations said restrictions on these firms' dominance in other countries "are already helping enterprises to develop and giving customers more options".
"Their dominance is now causing real harm by limiting options for users and market rivalry for companies," stated a consumer advocate.