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Apple may have to permit rivals to operate separate application platforms on Apple devices in the UK, after a ruling from the competition regulator.

This would be a significant change to Apple's infamous "closed system" where apps can only be downloaded from its own App Store.

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - indicating they have significant control over mobile platforms.

Regulatory Findings

The CMA said the tech firms "may be limiting innovation and market rivalry".

But the regulator clarified it did not "determine or presume misconduct" from the firms.

"The app economy generates 1.5% of the British economy and sustains around 400,000 jobs, which is why it's crucial these markets work well for enterprises," commented a top executive from the CMA.

Approximately ninety to one hundred percent of UK mobile devices run on Apple or Google's operating systems, creating what the regulator calls an "effective duopoly".

According to recent analysis, nearly half of British smartphone users use an Apple device - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

Apple's Response

The regulatory probe focused on how dominant the companies' own applications are versus rivals - as well as their web applications and platform software.

It is unclear what changes the regulator will look to request, but previously it published guidelines outlining possible actions it could take.

These comprise mandating it to be easier for people to transition between Apple and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

Apple specifically may be compelled to allow alternative app stores on its products, and enable people to download programs straight from companies' websites.

This would mirror a similar ruling in the EU, which previously took action against Apple for anti-competitive behaviour.

The technology firm warned the UK could face delays to receiving updates - as has occurred in the European Union - which the company attributes to heavy regulation.

For example, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the European market.

"We encounters fierce competition in every sector where we operate, and we strive continuously to create the finest offerings, services and user experience," the company said in a release.

"Britain's implementation of EU-style rules would weaken that, leaving users with weaker privacy and safety, slower availability to new features, and a fragmented, more complicated experience."

Google's Position

Android users can currently use alternative marketplaces - though commentators say they are not as smooth as the company's official application marketplace.

The CMA's roadmap said the search company may have to "modify the interface" of installing applications straight from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the rationale for the current classification," a company policy executive stated.

The executive said "most" of Google device owners use alternative app stores or download apps directly from a developer's website, and claimed there is a much wider selection of applications available for Google device owners compared to those on Apple devices.

"Currently available are 24,000 Google-compatible devices from thirteen hundred phone manufacturers worldwide, facing strong rivalry from Apple's platform in the UK," the spokesperson continued.

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

The company contends this means it opens up competition.

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

"The companies' control is now creating genuine problems by restricting choice for consumers and competition for businesses," stated a consumer advocate.