Regulatory Inquiry Reveals Concerns Over Apple and Google's Dominance in Mobile Browsers
UK Competition and Markets Authority finds duopoly stifles innovation and consumer choice in mobile browsing.
The Competition and Markets Authority (CMA) has published a report indicating that the dominance of tech giants Apple and Google in the mobile browsing market is detrimental to consumers in the United Kingdom and inhibits innovation in the sector.
The CMA's investigation highlights that the market is characterized by a duopoly, where Apple's Safari and Google's Chrome browsers effectively limit competition from alternative providers such as Mozilla's Firefox.
According to the CMA, Apple imposes restrictions on its iOS operating system that hinder the ability of competing browsers to implement innovative features.
Competing browsers must rely on Apple's WebKit engine, which the CMA claims restricts their capability to differentiate from Safari.
This situation results in a lack of competitive pressure to enhance user experience.
Notably, the report points out that Apple allowed Safari to introduce full-screen video functionality almost four years prior to permitting access to this feature for other browsers.
The impact of this delay in feature access demonstrates how Apple's control can dictate the pace of innovation across platforms.
The CMA's report also elaborates that nearly all mobile devices sold in the UK operate on either Apple's iOS or Google's Android systems, which are typically pre-installed on these devices.
As a consequence, Apple and Google maintain exclusive or leading positions within their respective app stores and browsing environments, further marginalizing third-party alternatives.
A spokesperson for Apple expressed concerns regarding the findings, stating that the potential remedies suggested by the CMA could compromise user privacy, security, and overall experience.
Apple emphasized its competitive environment, noting that users have the option to choose from various browsers available on the App Store and can switch their default browsers through device settings.
The company has committed to engage with the CMA to address their concerns constructively.
The CMA’s independent inquiry into the mobile browser market follows the introduction of a new digital markets competition regime in the UK at the beginning of the year.
This regime grants regulatory authorities increased powers to impose conduct requirements on companies deemed to hold strategic market status, providing opportunities to enhance competition and consumer choice.
Additionally, the CMA pointed to a financial arrangement between Apple and Google, wherein Google compensates Apple with a significant share of revenue from search advertising generated on Safari and Chrome within the iOS ecosystem.
This financial interdependence may further disincentivize competitive behavior in the market.
As part of its efforts to address these issues, the CMA is currently evaluating whether Apple and Google should be designated as firms with strategic market status, which could allow regulators to mandate greater access to system functionalities for third-party applications and services.
Margot Daly, chair of the CMA’s independent inquiry group, stated that the findings from the investigation clearly indicate that the competitive dynamics in the mobile browser market are not functioning effectively, which subsequently restricts innovation in the UK.
The CMA's investigation highlights that the market is characterized by a duopoly, where Apple's Safari and Google's Chrome browsers effectively limit competition from alternative providers such as Mozilla's Firefox.
According to the CMA, Apple imposes restrictions on its iOS operating system that hinder the ability of competing browsers to implement innovative features.
Competing browsers must rely on Apple's WebKit engine, which the CMA claims restricts their capability to differentiate from Safari.
This situation results in a lack of competitive pressure to enhance user experience.
Notably, the report points out that Apple allowed Safari to introduce full-screen video functionality almost four years prior to permitting access to this feature for other browsers.
The impact of this delay in feature access demonstrates how Apple's control can dictate the pace of innovation across platforms.
The CMA's report also elaborates that nearly all mobile devices sold in the UK operate on either Apple's iOS or Google's Android systems, which are typically pre-installed on these devices.
As a consequence, Apple and Google maintain exclusive or leading positions within their respective app stores and browsing environments, further marginalizing third-party alternatives.
A spokesperson for Apple expressed concerns regarding the findings, stating that the potential remedies suggested by the CMA could compromise user privacy, security, and overall experience.
Apple emphasized its competitive environment, noting that users have the option to choose from various browsers available on the App Store and can switch their default browsers through device settings.
The company has committed to engage with the CMA to address their concerns constructively.
The CMA’s independent inquiry into the mobile browser market follows the introduction of a new digital markets competition regime in the UK at the beginning of the year.
This regime grants regulatory authorities increased powers to impose conduct requirements on companies deemed to hold strategic market status, providing opportunities to enhance competition and consumer choice.
Additionally, the CMA pointed to a financial arrangement between Apple and Google, wherein Google compensates Apple with a significant share of revenue from search advertising generated on Safari and Chrome within the iOS ecosystem.
This financial interdependence may further disincentivize competitive behavior in the market.
As part of its efforts to address these issues, the CMA is currently evaluating whether Apple and Google should be designated as firms with strategic market status, which could allow regulators to mandate greater access to system functionalities for third-party applications and services.
Margot Daly, chair of the CMA’s independent inquiry group, stated that the findings from the investigation clearly indicate that the competitive dynamics in the mobile browser market are not functioning effectively, which subsequently restricts innovation in the UK.
