The tech giant may be forced to allow rival app stores in UK.

Apple may have to permit competitors to operate their own application platforms on Apple devices across Britain, following a decision from the market watchdog.

This represents a significant change to Apple's well-known "closed system" where applications can only be downloaded from the company's official marketplace.

But the Competition and Markets Authority has designated both Apple and Google as having "strategic market status" - indicating they have a lot of power over smartphone ecosystems.

Regulatory Findings

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

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

"The app economy contributes one and a half percent of the British economy and sustains around 400,000 jobs, which is why it's crucial these markets function properly for business," stated a top executive from the CMA.

Around 90-100% of British smartphones run on the two tech companies' operating systems, creating what the regulator calls an "effective duopoly".

According to recent analysis, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

Apple's Reaction

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

It is unclear what changes the authority will seek to implement, but previously it published guidelines outlining potential measures it could take.

These include mandating it to be more straightforward for people to transition between Apple and Android phones, and for both companies to list applications "in a fair, objective and transparent manner" in their marketplaces.

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

This would mirror a similar ruling in the European Union, which previously imposed measures against the company for restrictive practices.

Apple warned the United Kingdom could face delays to receiving updates - as has occurred in the EU - which the company blames on heavy regulation.

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

"Apple encounters fierce competition in every market where we do business, and we strive continuously to create the best products, services and user experience," the company said in a release.

"Britain's implementation of European regulations would weaken that, leaving users with weaker privacy and safety, delayed access to latest functions, and a fragmented, less seamless user journey."

Google's Position

Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as Google's own Play Store.

The CMA's roadmap said Google may have to "modify the interface" of downloading apps directly from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the justification for the current classification," a company competition lead remarked.

The executive said "the majority" of Android users use alternative app stores or download apps directly from a developer's website, and asserted there is a much wider selection of apps offered for Google device owners versus those on Apple devices.

"Currently available are 24,000 Google-compatible devices from thirteen hundred phone manufacturers globally, facing strong rivalry from iOS in the United Kingdom," the spokesperson added.

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

The company argues this means it promotes market competition.

But consumer groups said curbs on these firms' dominance in different nations "currently assist businesses to innovate and providing customers more choice".

"Their dominance is now creating genuine problems by restricting choice for users and competition for companies," stated a consumer advocate.