UK watchdog accuses Apple, Google of stifling mobile browser competition
What's the story
The UK's Competition and Markets Authority (CMA) has published a report, noting that competition is not working well in the country's mobile browser market. The CMA blames this issue largely on tech giants Apple and Google. An independent inquiry group investigated on the CMA's behalf, looking into Apple's policies governing iOS, Safari, and WebKit. They found that these policies impede competition among third-party web browser providers and limit market growth.
Policy impact
Apple's policies hinder competition
The CMA report highlights a number of anti-competitive Apple policies. These include mandating all iOS browsers to use its WebKit browser engine, providing Safari preferential access to features over other WebKit-based browsers, and restricting in-app browsing. The report also takes issue with Apple's decision to pre-install and prominently display Safari as the default browser on iPhones. Although users can change this default, it reportedly diminishes awareness of alternative apps among users.
Google's role
Google also implicated, but to a lesser extent
The CMA report also implicates Google's Android mobile ecosystem in stifling competition, but not as much as Apple. It raises concerns over Chrome being pre-installed as the default web browser on most Android devices. However, it notes that both Apple and Google have taken steps since November 2023 to make it easier for users to switch to alternative browsers. These actions have addressed some, but not all, concerns related to choice architecture.
Financial incentives
Revenue sharing agreements impact competition
The CMA report also sheds light on revenue-sharing agreements between Apple and Google, wherein the latter pays a large chunk of search revenue to the former in return for being the default search engine on iPhones. The report indicates that these deals considerably lessen their motivation to compete. Both companies are yet to comment on the CMA's findings.
Proposed measures
CMA proposes measures to boost competition
The CMA has proposed measures to improve competition in UK's mobile browser market. These include requiring Apple to allow developers use alternative browser engines on iOS, asking Apple and Google to provide a browser choice screen during device setup, and banning the Chrome revenue-sharing agreements between the two companies. However, these suggestions are not enforceable at the moment but could change in the coming months.
Ongoing investigations
CMA investigates Apple, Google for potential strategic market status
Back in January, the CMA launched separate probes into Apple and Google's mobile ecosystems to see if they should be classified as having strategic market status (SMS) under the Digital Markets, Competition and Consumers Act (DMCC). If classified as SMS, the companies would face stricter antitrust obligations. The ongoing probes are likely to conclude later this year.