The tech giant may be forced to permit competing app stores in UK.
Apple could be required to allow competitors to operate separate application platforms on Apple devices in the UK, following a decision from the competition regulator.
This would be a major shift to Apple's infamous "closed system" where apps can only be installed from its own App Store.
But the UK competition watchdog has designated both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.
Watchdog Assessment
The CMA said the two companies "may be limiting progress and competition".
But the regulator clarified it did not "determine or presume misconduct" from the firms.
"The app economy generates 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's crucial these sectors work well for business," commented a top executive from the competition authority.
Around 90-100% of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".
Based on recent analysis, nearly half of UK mobile owners use an Apple device - which runs Apple's iOS - with the vast majority of the rest using the Android OS.
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 web applications and platform software.
It is unclear what modifications the regulator will seek to implement, but previously it published roadmaps detailing possible actions it could take.
These comprise requiring it to be more straightforward for people to switch between iOS and Android phones, and for both companies 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 download programs straight from developer sites.
This would mirror a similar ruling in the European Union, which previously took action against the company for restrictive practices.
The technology firm cautioned the UK could face delays to receiving updates - as has occurred in the EU - which the company attributes to strict rules.
For example, some AI features which have been rolled out in other regions are not accessible in the European market.
"We faces intense rivalry in every market where we operate, and we work tirelessly to create the finest offerings, services and customer interface," the company said in a release.
"The UK's adoption of European regulations would weaken that, resulting in consumers with weaker privacy and safety, slower availability to new features, and a divided, less seamless experience."
Google's Position
Google device owners can currently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own application marketplace.
The regulator's plan said Google may have to "modify the interface" of downloading apps straight from online sources, as well as "remove user frictions" when using alternative app stores.
"There appears to be no the rationale for the current classification," a Google competition lead remarked.
The executive said "most" of Android users use third-party platforms or download apps straight from a creator's site, and asserted there is a much wider selection of applications offered for Android users compared to those on Apple devices.
"There are now twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry from iOS in the United Kingdom," the representative continued.
Google's platform 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 market competition.
But advocacy organizations said restrictions on these firms' dominance in different nations "are already helping businesses to develop and providing customers more options".
"Their dominance is now creating genuine problems by restricting choice for consumers and competition for businesses," stated a consumer advocate.