Apple may be forced to allow rival application marketplaces in UK.
Apple could be required to allow competitors to run their own application platforms on Apple devices in the UK, following a decision from the market watchdog.
This would be a significant change to Apple's well-known "walled garden" where applications can only be installed from the company's official marketplace.
But the UK competition watchdog has designated both the tech giants as having "dominant market position" - indicating they have a lot of power over smartphone ecosystems.
Watchdog Assessment
The CMA said the tech firms "may be limiting innovation and competition".
But the authority clarified it did not "find or assume wrongdoing" from the firms.
"The app economy generates one and a half percent of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these sectors function properly for enterprises," stated a top executive from the CMA.
Around 90-100% of British smartphones run on the two tech companies' operating systems, creating what the regulator calls an "effective duopoly".
Based on recent analysis, 48.5% of British smartphone users own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.
Apple's Reaction
The CMA's investigation focused on how dominant Apple and Google's own applications are compared with competitors - as well as their browsers and platform software.
It is unclear what changes the regulator will look to request, but earlier it published roadmaps detailing possible actions it could take.
These include requiring it to be easier for people to transition between iOS and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.
Apple particularly may be compelled to permit alternative app stores on its products, and enable people to download programs straight from companies' websites.
This would follow comparable regulations in the European Union, which previously took action against the company for restrictive practices.
Apple warned the United Kingdom could face delays to getting new features - as has occurred in the European Union - which the organization blames on strict rules.
For example, some AI capabilities which have been launched in other parts of the world are not accessible in the European market.
"Apple faces fierce competition in every market where we operate, and we strive continuously to create the finest offerings, services and user experience," the company said in a release.
"Britain's implementation of European regulations would undermine that, leaving users with reduced data protection and safety, delayed access to new features, and a fragmented, less seamless experience."
Google's Position
Android users can presently use alternative marketplaces - though critics say they are not as user-friendly as the company's official Play Store.
The regulator's plan said Google may have to "modify the interface" of installing applications directly from online sources, as well as "remove user frictions" when using third-party platforms.
"There appears to be no the justification for today's designation decision," a company competition lead stated.
The executive said "most" of Android users use alternative app stores or install applications straight from a developer's website, and claimed there is a much wider selection of applications offered for Android users versus 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 added.
Google's platform is an open-source operating system, which means creators can use and build on top of it for no cost.
Google contends this means it opens up competition.
But consumer groups said curbs on these companies' power in different nations "currently assist enterprises to develop and providing consumers more options".
"The companies' control is now creating genuine problems by restricting choice for consumers and market rivalry for companies," commented a policy expert.