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Apple could be required to permit competitors to run their own application platforms on iPhones in the UK, after a ruling from the competition regulator.

This would be a major shift to Apple's well-known "closed system" where applications can only be downloaded from its own App Store.

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Regulatory Assessment

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

But the authority clarified it did not "determine or presume wrongdoing" from the firms.

"Mobile applications generates 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's crucial these sectors work well for business," stated a top executive from the CMA.

Approximately 90-100% of UK mobile devices operate using Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

Based on recent analysis, nearly half of UK mobile owners own an iPhone - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

Apple's Reaction

The regulatory probe examined how prominent the companies' own applications are versus competitors - as well as their browsers and platform software.

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

These include mandating it to be more straightforward for people to transition between iOS and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

The Cupertino company specifically may be compelled to permit third-party marketplaces on its products, and enable people to download programs directly from companies' websites.

This would follow a similar ruling in the EU, which previously imposed measures against the company for restrictive practices.

The technology firm cautioned the UK could lose access to receiving updates - as has happened in the European Union - which the company blames on heavy regulation.

For instance, some AI capabilities which have been rolled out in other regions are not accessible in the EU.

"Apple faces intense rivalry in every market where we operate, and we work tirelessly to create the finest offerings, services and user experience," the company said in a statement.

"The UK's adoption of EU-style rules would weaken that, resulting in consumers with weaker privacy and security, delayed access to latest functions, and a divided, less seamless user journey."

Google's Position

Android users can currently use third-party app stores - though commentators say they are not as smooth as the company's official application marketplace.

The CMA's roadmap said Google may have to "modify the interface" of installing applications directly from online sources, as well as "eliminate barriers" when using third-party platforms.

"There appears to be no the rationale for today's designation decision," a Google competition lead remarked.

The representative said "the majority" of Android users use third-party platforms or download apps directly from a developer's website, and claimed there is a much wider selection of apps offered for Android users versus those on Apple devices.

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing intense competition from Apple's platform in the UK," the representative added.

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

The company argues this means it promotes market competition.

But consumer groups said restrictions on these companies' power in different nations "are already helping enterprises to innovate and providing consumers more options".

"The companies' control is now creating genuine problems by restricting choice for users and market rivalry for businesses," commented a consumer advocate.