Apple may be forced to allow competing application marketplaces in UK.
Apple could be required to allow rivals to operate separate application platforms on iPhones across Britain, after a ruling from the competition regulator.
This would be a significant change to Apple's infamous "closed system" where applications can only be downloaded from the company's official marketplace.
But the UK competition watchdog has designated both Apple and Google as having "dominant market position" - effectively saying they have a lot of power over smartphone ecosystems.
Regulatory Assessment
The regulator said the tech firms "could be restricting progress and market rivalry".
But the regulator emphasized it did not "find or assume misconduct" from the firms.
"Mobile applications generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's essential these markets function properly for enterprises," commented a top executive from the CMA.
Around 90-100% of UK mobile devices operate using the two tech companies' operating systems, creating what the authority calls an "effective duopoly".
Based on current data, nearly half of UK mobile owners use an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using the Android OS.
Apple's Response
The CMA's investigation focused on how prominent Apple and Google's own applications are versus rivals - as well as their web applications and operating systems.
It is unclear what modifications the regulator will look to request, but earlier it published roadmaps detailing potential measures it could take.
These include requiring it to be more straightforward for people to switch between Apple and Android phones, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.
The Cupertino company particularly may be required to allow third-party marketplaces on its products, and enable people to download programs directly from developer sites.
This would mirror comparable regulations in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.
Apple warned the United Kingdom could face delays to receiving updates - as has occurred in the EU - which the organization attributes to strict rules.
For instance, some Apple Intelligence features which have been launched in other regions are not available in the European market.
"Apple faces fierce competition in every market where we do business, and we work tirelessly to create the best products, solutions and user experience," the company said in a release.
"Britain's implementation of EU-style rules would undermine that, leaving users with reduced data protection and security, delayed access to latest functions, and a divided, less seamless user journey."
The Search Giant's Position
Android users can currently use third-party app stores - though critics say they are not as smooth as the company's official Play Store.
The CMA's roadmap said the search company may have to "change the user experience" of downloading apps straight from websites, as well as "remove user frictions" when using third-party platforms.
"We simply do not see the rationale for the current classification," a Google competition lead remarked.
The representative said "the majority" 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 apps offered for Google device owners versus those on Apple devices.
"Currently available are 24,000 Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative added.
Android is an open-source operating system, which means creators can utilize and develop on top of it for no cost.
The company contends this means it opens up market competition.
But consumer groups said restrictions on these firms' dominance in different nations "currently assist businesses to develop and giving customers more options".
"The companies' control is now causing real harm by limiting options for consumers and competition for businesses," commented a policy expert.