Apple may be forced to permit competing app stores within the United Kingdom.
The iPhone maker may have to permit competitors to operate their own application platforms on Apple devices across Britain, after a decision from the market watchdog.
This represents a significant change to Apple's infamous "walled garden" where apps can only be downloaded from its own official marketplace.
But the Competition and Markets Authority has designated both the tech giants as having "strategic market status" - effectively saying they have a lot of power over mobile platforms.
Watchdog Assessment
The regulator said the two companies "may be limiting innovation and market rivalry".
But the authority clarified it did not "determine or presume wrongdoing" from the companies.
"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 crucial these sectors work well for business," commented a top executive from the competition authority.
Approximately ninety to one hundred percent of UK mobile devices operate using the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".
According to current data, nearly half of UK mobile owners use an Apple device - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.
Apple's Reaction
The CMA's investigation examined how prominent the companies' own apps are compared with rivals - as well as their browsers and operating systems.
It is unclear what modifications the regulator will seek to implement, but earlier it published roadmaps detailing potential measures it could take.
These comprise requiring it to be more straightforward for people to transition between iOS and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their app stores.
Apple specifically may be compelled to permit alternative app stores on its products, and enable people to install apps straight from companies' websites.
This would mirror comparable regulations in the European Union, which previously imposed measures against the company for anti-competitive behaviour.
Apple warned the United Kingdom could face delays to receiving updates - as has occurred in the EU - which the company blames on strict rules.
For instance, some AI features which have been rolled out in other regions are not accessible in the European market.
"Apple faces intense rivalry in every sector where we operate, and we strive continuously to create the finest offerings, solutions and customer interface," the organization said in a release.
"The UK's adoption of EU-style rules would weaken that, leaving users with weaker privacy and safety, delayed access to latest functions, and a fragmented, less seamless experience."
The Search Giant's Position
Google device owners can presently use alternative marketplaces - though critics say they are not as smooth as the company's official application marketplace.
The CMA's roadmap said the search company may have to "change the user experience" of downloading apps directly from online sources, as well as "eliminate barriers" when using alternative app stores.
"There appears to be no the rationale for the current classification," a company competition lead remarked.
The representative said "the majority" of Android users use third-party platforms or install applications directly from a developer's website, and asserted there is a much wider selection of apps offered for Google device owners compared to those on iOS products.
"Currently available are twenty-four thousand Android phone models from 1,300 device makers worldwide, facing strong rivalry from iOS in the UK," the spokesperson continued.
Google's platform is an freely available software, which means developers can utilize and develop on top of it for free.
Google contends this means it opens up market competition.
But advocacy organizations said curbs on these companies' power in other countries "currently assist businesses to develop and providing customers more options".
"The companies' control is now causing real harm by limiting options for users and competition for businesses," stated a consumer advocate.