Apple may be forced to allow rival application marketplaces in UK.
Apple may have to permit competitors to run separate application platforms on Apple devices across Britain, following a ruling from the competition regulator.
This would be a significant change to the company's well-known "walled garden" where apps can only be installed from the company's official marketplace.
But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - effectively saying they have a lot of power over mobile platforms.
Watchdog Assessment
The CMA said the two companies "may be limiting innovation and market rivalry".
But the regulator emphasized it did not "determine or presume misconduct" from the firms.
"Mobile applications generates 1.5% of the British economy and supports around 400,000 jobs, which is why it's crucial these sectors work well for business," commented a senior official from the competition authority.
Approximately 90-100% of British smartphones operate using the two tech companies' mobile platforms, creating what the authority calls an "effective duopoly".
According to current data, nearly half of British smartphone users use an Apple device - which runs Apple's iOS - with the vast majority of the rest using Google's Android.
The Company's Response
The regulatory probe focused on how prominent the companies' own applications are versus rivals - as well as their web applications and operating systems.
It is unclear what modifications the authority will seek to implement, but previously it published guidelines outlining potential measures it could take.
These include requiring it to be more straightforward for people to switch between iOS and Android phones, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.
The Cupertino company specifically may be compelled to allow alternative app stores on its devices, and enable people to install apps straight from developer sites.
This would follow comparable regulations in the European Union, which previously imposed measures against Apple for anti-competitive behaviour.
Apple warned the UK could face delays to receiving updates - as has occurred in the European Union - which the company blames on strict rules.
For example, some AI capabilities which have been rolled out in other regions are not available in the European market.
"Apple faces intense rivalry in every sector where we operate, and we strive continuously to create the best products, services and customer interface," the company said in a statement.
"The UK's adoption of European regulations would undermine that, leaving users with reduced data protection and safety, slower availability to latest functions, and a divided, less seamless experience."
The Search Giant's Position
Google device owners can presently use third-party app stores - though commentators say they are not as user-friendly as the company's official application marketplace.
The regulator's plan said Google may have to "change the user experience" of downloading apps directly from websites, as well as "eliminate barriers" when using alternative app stores.
"There appears to be no the justification for the current classification," a company competition lead remarked.
The executive said "the majority" of Google device owners use third-party platforms or install applications directly from a creator's site, and asserted there is a far greater range of apps offered for Android users compared to those on iOS products.
"Currently available are twenty-four thousand Android phone models from 1,300 phone manufacturers worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson added.
Android is an freely available software, which means creators can utilize and develop on top of it for free.
Google contends this means it opens up competition.
But consumer groups said curbs on these firms' dominance in different nations "currently assist enterprises to develop and giving customers more choice".
"The companies' control is now creating genuine problems by restricting choice for consumers and competition for companies," stated a policy expert.