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

This represents a significant change to Apple's infamous "walled garden" where applications can only be downloaded from its own App Store.

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

Watchdog Findings

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

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 sustains around four hundred thousand positions, which is why it's essential these sectors work well for business," commented a top executive from the competition authority.

Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

Based on recent analysis, nearly half of British smartphone users own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

Apple's Reaction

The regulatory probe examined how dominant Apple and Google's own apps are versus rivals - as well as their web applications and operating systems.

It is unclear what modifications the authority will seek to implement, but earlier it published guidelines detailing potential measures it could take.

These comprise mandating it to be easier for people to transition between Apple and Android phones, and for both firms to rank apps "fairly and openly" in their marketplaces.

The Cupertino company particularly may be required to allow alternative app stores on its products, and let people to download programs directly from companies' websites.

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

The technology firm cautioned the UK could face delays to getting new features - as has happened in the EU - which the company attributes to heavy regulation.

For example, some Apple Intelligence capabilities which have been rolled out in other regions are not available in the EU.

"Apple encounters intense rivalry in every market where we do business, and we work tirelessly to create the best products, services and customer interface," the organization said in a release.

"Britain's implementation of European regulations would undermine that, resulting in consumers with reduced data protection and security, slower availability to new features, and a fragmented, less seamless user journey."

Google's Standpoint

Google device owners can presently use alternative marketplaces - though critics say they are not as smooth as the company's official application marketplace.

The regulator's plan said the search company may have to "modify the interface" of downloading apps directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for today's designation decision," a company policy executive stated.

The executive said "the majority" of Google device owners use alternative app stores or install applications straight from a developer's website, and claimed there is a much wider selection of apps available for Google device owners compared to those on Apple devices.

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers globally, facing intense competition from iOS in the United Kingdom," the representative continued.

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

Google argues this means it opens up competition.

But consumer groups said restrictions on these firms' dominance in other countries "currently assist enterprises to develop and giving consumers more choice".

"Their dominance is now causing real harm by limiting options for consumers and market rivalry for businesses," commented a policy expert.