LONDON, Oct 22 (Reuters) - Britain on Wednesday moved to

loosen the grip of Apple ( AAPL ) and Google in

smartphones by designating them as having "strategic market

status", giving it the power to demand specific changes to boost

competition.

The Competition and Markets Authority said Apple ( AAPL ) and

Google's mobile platforms were used by businesses right across

the economy, but the platforms' rules may be "limiting

innovation and competition".

It said it was joining the United States, the European

Union, Japan and others in taking action to support businesses

and consumers dependent on mobile platforms.

Nearly all smartphones in Britain run on either Apple's ( AAPL ) iOS

or Google's Android operating systems, and their respective app

stores and browsers have exclusive or leading positions on their

platforms.

The CMA said its decision was not a finding of

wrongdoing and did not introduce any immediate requirements, but

it would now consider "proportionate, targeted interventions" to

ensure the platforms were open to effective competition.

Google, which received the first ever SMS designation

earlier this month for its search operations, said the second

was "disappointing, disproportionate and unwarranted".

"The CMA's next steps will be crucial if the UK's

digital markets regime is to meet its promise of being

pro-growth and pro-innovation," Google's senior competition

director Oliver Bethell said in a blog post.

Apple ( AAPL ) said it "worked tirelessly" to create the best

products, services and user experience.

"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," Apple ( AAPL ) said.

"We've seen the impact of regulation on Apple ( AAPL ) users in

the EU, and we urge the UK not to follow the same path."