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Apple may have to allow rivals to run their own application platforms on iPhones across Britain, following a ruling from the competition regulator.

This would be a major shift to the company's infamous "walled garden" where applications can only be installed from the company's App Store.

But the UK competition watchdog has classified both Apple and Google as having "dominant market position" - indicating they have a lot of power over mobile platforms.

Regulatory Assessment

The CMA said the two companies "could be restricting innovation and competition".

But the authority clarified it did not "find or assume wrongdoing" from the companies.

"Mobile applications generates 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," commented a top executive from the competition authority.

Around 90-100% of British smartphones operate using Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

Based on 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 the Android OS.

Apple's Reaction

The regulatory probe examined how dominant Apple and Google's own apps are compared with competitors - as well as their web applications and platform software.

It is unclear what modifications the authority will seek to implement, but previously it published roadmaps detailing possible actions it could take.

These comprise requiring it to be more straightforward for people to transition between Apple and Android devices, and for both companies to rank apps "fairly and openly" in their marketplaces.

Apple specifically may be required to allow alternative app stores on its products, and enable people to install apps directly from developer sites.

This would mirror 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 face delays to receiving updates - as has happened in the European Union - which the company blames on strict rules.

For example, some AI capabilities which have been rolled out in other regions are not available in the European market.

"Apple faces intense rivalry in every market where we operate, and we work tirelessly to create the finest offerings, solutions and user experience," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, resulting in consumers with reduced data protection and safety, slower availability to latest functions, and a fragmented, more complicated experience."

The Search Giant's Position

Android users can currently use alternative marketplaces - though critics say they are not as smooth as Google's own application marketplace.

The CMA's roadmap said Google may have to "modify the interface" of installing applications directly 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 stated.

The executive said "the majority" of Google device owners use alternative app stores or download apps directly from a developer's website, and claimed there is a far greater range of applications available for Google device owners versus those on iOS products.

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers globally, facing strong rivalry from iOS in the UK," the representative continued.

Google's platform is an freely available software, which means developers can utilize and develop on top of it for free.

Google argues this means it opens up competition.

But advocacy organizations said restrictions on these companies' power in different nations "are already helping enterprises to innovate and giving consumers more choice".

"Their dominance is now creating genuine problems by restricting choice for consumers and market rivalry for companies," stated a policy expert.