Apple could be required to permit rivals to operate separate app stores on Apple devices across Britain, following a ruling from the competition regulator.
This represents a major shift to Apple's infamous "walled garden" where apps 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" - effectively saying they have a lot of power over mobile platforms.
Regulatory Findings
The CMA said the tech firms "may be limiting innovation and competition".
But the regulator emphasized it did not "find or assume wrongdoing" from the firms.
"The app economy contributes one and a half percent of the UK's GDP and supports around four hundred thousand positions, which is why it's essential these sectors work well for enterprises," commented a top executive from the CMA.
Around 90-100% of British smartphones operate using the two tech companies' operating systems, creating what the regulator calls an "virtual monopoly".
Based on 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.
The Company's Reaction
The CMA's investigation examined how prominent Apple and Google's own apps are versus rivals - as well as their browsers and operating systems.
It is unknown what modifications the regulator will look to request, but earlier it published roadmaps detailing possible actions it could take.
These comprise requiring it to be easier for people to transition between iOS and Android phones, and for both companies to list applications "fairly and openly" in their app stores.
Apple specifically may be required to allow third-party marketplaces on its products, and let people to download programs 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 lose access to receiving updates - as has happened in the EU - which the company attributes to strict rules.
For instance, some Apple Intelligence capabilities which have been rolled out in other parts of the world are not available in the European market.
"Apple encounters fierce competition in every sector where we operate, and we strive continuously to create the finest offerings, services and user experience," the organization said in a statement.
"Britain's implementation of European regulations would weaken that, leaving users with weaker privacy and safety, slower availability to new features, and a divided, less seamless user journey."
Google's Standpoint
Google device owners can currently use alternative marketplaces - though critics say they are not as smooth as the company's official application marketplace.
The CMA's roadmap said the search company may have to "modify the interface" of installing applications directly from online sources, as well as "eliminate barriers" when using alternative app stores.
"We simply do not see the rationale for the current classification," a Google policy executive remarked.
The representative said "most" of Android users use third-party platforms or download apps directly from a developer's website, and asserted there is a far greater range of apps available for Android users versus those on iOS products.
"Currently available are 24,000 Android phone models from 1,300 device makers globally, facing intense competition from Apple's platform in the United Kingdom," the representative continued.
Google's platform is an open-source operating system, which means creators can utilize and develop on top of it for no cost.
Google argues this means it opens up market competition.
But consumer groups said restrictions on these firms' dominance in other countries "currently assist businesses to develop and giving consumers more choice".
"Their dominance is now causing real harm by restricting choice for users and competition for companies," stated a consumer advocate.
