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Apple may have to permit rivals to operate their own app stores on iPhones across Britain, after a ruling from the competition regulator.

This would be a major shift to the company's well-known "closed system" where applications can only be downloaded from its own official marketplace.

But the UK competition watchdog has designated both the tech giants as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Regulatory Assessment

The regulator said the tech firms "could be restricting innovation and competition".

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

"Mobile applications generates 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these sectors function properly for enterprises," commented a senior official from the competition authority.

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

According to recent analysis, nearly half of UK mobile owners use an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using the Android OS.

The Company's Response

The CMA's investigation 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 regulator 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 iOS and Android devices, and for both companies to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company specifically may be required to allow alternative app stores on its products, and let people to download programs directly from developer sites.

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

The technology firm warned the United Kingdom could lose access to getting new features - as has happened in the EU - which the organization blames on strict rules.

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

"We faces intense rivalry in every sector where we operate, and we strive continuously to create the best products, services and user experience," the organization said in a statement.

"Britain's implementation of EU-style rules would weaken that, resulting in consumers with weaker privacy and safety, delayed access to latest functions, and a divided, less seamless user journey."

The Search Giant's Position

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

The regulator's plan said Google may have to "change the user experience" of installing applications straight from online sources, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the justification for the current classification," a Google policy executive stated.

The executive said "most" of Android users use third-party platforms or download apps straight from a developer's website, and claimed there is a far greater range of applications offered for Android users versus those on iOS products.

"Currently available are 24,000 Google-compatible devices from 1,300 phone manufacturers worldwide, facing intense competition from iOS in the United Kingdom," the spokesperson added.

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

Google argues this means it promotes competition.

But advocacy organizations said restrictions on these firms' dominance in different nations "are already helping enterprises to develop and providing consumers more choice".

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