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Apple may have to permit rivals to operate their own app stores on Apple devices across Britain, following a decision from the market watchdog.

This represents a major shift to the company's infamous "walled garden" where apps can only be downloaded from its own official marketplace.

But the UK competition watchdog has designated both the tech giants as having "strategic market status" - indicating they have significant control over smartphone ecosystems.

Watchdog Assessment

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

But the regulator clarified it did not "find or assume misconduct" from the companies.

"Mobile applications contributes 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these markets work well for business," stated a senior official from the CMA.

Around ninety to one hundred percent of UK mobile devices run on the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

According to recent analysis, 48.5% of UK mobile owners use an Apple device - which runs Apple's iOS - with the overwhelming bulk of the remaining users using Google's Android.

The Company's Response

The CMA's investigation examined how dominant the companies' own applications are compared with competitors - as well as their web applications and platform software.

It is unknown what modifications the authority will look to request, but earlier it published roadmaps detailing possible actions it could take.

These include mandating it to be more straightforward for people to transition between iOS and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company particularly may be compelled to permit alternative app stores on its devices, and let people to install apps directly from developer sites.

This would mirror a similar ruling in the EU, which previously took action against the company for restrictive practices.

The technology firm warned the UK could lose access to getting new features - as has occurred in the EU - which the company blames on strict rules.

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

"Apple faces fierce competition in every sector where we operate, and we strive continuously to create the best products, services and user experience," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with weaker privacy and security, delayed access to new features, and a fragmented, less seamless experience."

The Search Giant's Position

Android users can currently use alternative marketplaces - though critics say they are not as smooth as the company's official Play Store.

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 third-party platforms.

"There appears to be no the justification for today's designation decision," a Google policy executive stated.

The representative said "the majority" of Google device owners use alternative app stores or install applications directly from a creator's site, and asserted there is a far greater range of apps offered for Google device owners compared to those on iOS products.

"There are now 24,000 Android phone models from thirteen hundred device makers globally, facing strong rivalry from iOS in the UK," the representative continued.

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

The company contends this means it promotes competition.

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

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