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The iPhone maker could be required to allow rivals to run their own application platforms on iPhones in the UK, after a decision from the market watchdog.

This represents a significant change to the company's infamous "walled garden" where apps can only be downloaded from the company's App Store.

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have a lot of power over mobile platforms.

Watchdog Findings

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

But the regulator clarified it did not "find or assume misconduct" from the companies.

"The app economy contributes 1.5% of the UK's GDP and sustains around 400,000 jobs, which is why it's crucial these sectors function properly for business," stated a top executive from the competition authority.

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

According to recent analysis, 48.5% of British smartphone users use an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

The Company's Response

The regulatory probe examined how dominant the companies' own apps are versus competitors - as well as their web applications and operating systems.

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

These include mandating it to be easier for people to switch between Apple and Android devices, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company particularly may be compelled to allow third-party marketplaces on its products, and let people to download programs straight from developer sites.

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

The technology firm warned the United Kingdom could lose access to receiving updates - as has occurred in the European Union - which the organization attributes to heavy regulation.

For instance, some Apple Intelligence capabilities which have been rolled out in other parts of the world are not accessible in the EU.

"Apple encounters intense rivalry in every market where we do business, and we work tirelessly to create the finest offerings, solutions and customer interface," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with reduced data protection and safety, delayed access to latest functions, and a fragmented, less seamless experience."

The Search Giant's Position

Google device owners can currently use alternative marketplaces - though commentators say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said Google may have to "modify the interface" of installing applications straight from online sources, as well as "remove user frictions" when using third-party platforms.

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

The executive said "the majority" of Android users use third-party platforms or install applications directly from a developer's website, and asserted there is a much wider selection of applications available for Google device owners versus those on iOS products.

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing intense competition from iOS in the United Kingdom," the representative added.

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

Google contends this means it opens up market competition.

But advocacy organizations said restrictions on these companies' power in other countries "are already helping businesses to innovate and providing customers more choice".

"The companies' control is now causing real harm by restricting choice for users and market rivalry for companies," commented a policy expert.