Apple may be forced to allow rival app stores within the United Kingdom.

The iPhone maker may have to permit competitors to operate their own app stores on iPhones in the UK, following a decision from the market watchdog.

This would be a major shift to the company's infamous "closed system" where apps can only be installed from its own official marketplace.

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - indicating they have significant control over mobile platforms.

Watchdog Findings

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

But the regulator emphasized it did not "find or assume misconduct" from the companies.

"The app economy generates one and a half percent of the UK's GDP and supports around 400,000 jobs, which is why it's essential these markets work well for business," commented a top executive from the CMA.

Around 90-100% of British smartphones operate using Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

According to current data, 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 Google's Android.

Apple's Response

The CMA's investigation focused on how dominant the companies' own apps are versus competitors - as well as their web applications and operating systems.

It is unknown what modifications the authority will look to request, but earlier it published guidelines detailing potential measures it could take.

These include mandating it to be easier for people to switch between iOS and Android phones, and for both companies to rank apps "fairly and openly" in their marketplaces.

Apple specifically may be compelled to allow third-party marketplaces on its devices, and enable people to download programs straight from developer sites.

This would mirror a similar ruling in the EU, which previously imposed measures against Apple for anti-competitive behaviour.

Apple cautioned the UK could face delays to getting new features - as has happened in the EU - which the company attributes to strict rules.

For instance, some AI features which have been launched in other regions are not available in the European market.

"Apple encounters fierce competition in every market where we operate, and we work tirelessly to create the best products, services and customer interface," the company said in a statement.

"The UK's adoption of EU-style rules would undermine that, leaving users with reduced data protection and safety, slower availability to latest functions, and a fragmented, less seamless user journey."

Google's Standpoint

Google device owners can currently use third-party app stores - though commentators say they are not as smooth as Google's own application marketplace.

The regulator's plan said Google may have to "modify the interface" of downloading apps directly from online sources, as well as "remove user frictions" when using third-party platforms.

"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 third-party platforms or download apps straight from a creator's site, and claimed there is a far greater range of apps available for Google device owners compared to those on iOS products.

"There are now twenty-four thousand Android phone models from thirteen hundred device makers worldwide, facing strong rivalry from iOS in the United Kingdom," the spokesperson added.

Google's platform is an freely available software, which means developers can use and build on top of it for no cost.

The company argues this means it opens up competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping businesses to innovate and providing customers more options".

"The companies' control is now creating genuine problems by limiting options for consumers and market rivalry for companies," commented a consumer advocate.