The tech giant could be compelled to allow competing application marketplaces in UK.
Apple may have to permit competitors to run their own app stores on Apple devices across Britain, following a decision from the market watchdog.
This would be a major shift to the company's infamous "walled garden" where apps can only be installed from the company's App Store.
But the Competition and Markets Authority has designated both the tech giants as having "strategic market status" - indicating they have significant control over mobile platforms.
Watchdog Assessment
The CMA said the tech firms "may be limiting progress and market rivalry".
But the authority emphasized it did not "find or assume wrongdoing" from the firms.
"Mobile applications contributes 1.5% of the UK's GDP and sustains around 400,000 jobs, which is why it's crucial these markets function properly for enterprises," stated a top executive from the CMA.
Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's operating systems, creating what the regulator calls an "effective duopoly".
Based on current data, 48.5% of UK mobile owners own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the remaining users using Google's Android.
The Company's Response
The regulatory probe examined how prominent the companies' own apps are compared with competitors - as well as their web applications and platform software.
It is unknown what changes the authority will look to request, but earlier it published guidelines outlining potential measures it could take.
These include requiring it to be easier for people to switch between Apple and Android devices, and for both companies to rank apps "fairly and openly" in their marketplaces.
Apple specifically may be required to allow third-party marketplaces on its devices, and let 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 anti-competitive behaviour.
Apple warned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the company attributes to heavy regulation.
For instance, some Apple Intelligence features which have been launched in other regions are not available in the European market.
"We encounters fierce competition in every sector where we do business, and we work tirelessly to create the best products, solutions and user experience," the organization said in a statement.
"The UK's adoption of European regulations would weaken that, resulting in consumers with weaker privacy and security, delayed access to latest functions, and a divided, more complicated experience."
The Search Giant's Position
Google device owners can presently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own Play Store.
The CMA's roadmap said Google may have to "modify the interface" of installing applications straight from websites, as well as "remove user frictions" when using alternative app stores.
"There appears to be no the justification for the current classification," a Google competition lead stated.
The executive said "the majority" of Android users use alternative app stores or install applications directly from a developer's website, and asserted there is a far greater range of applications offered for Google device owners compared to those on Apple devices.
"Currently available are 24,000 Google-compatible devices from thirteen hundred phone manufacturers worldwide, facing strong rivalry from Apple's platform in the United Kingdom," the spokesperson continued.
Google's platform is an open-source operating system, which means creators can use and build on top of it for free.
The company argues this means it promotes competition.
But consumer groups said curbs on these companies' power in different nations "are already helping businesses to innovate and providing consumers more options".
"The companies' control is now causing real harm by limiting options for users and market rivalry for businesses," commented a consumer advocate.