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Technology giants Google and Apple are under new scrutiny from the United Kingdom’s Competition and Markets Authority (CMA), which has accused them of stifling competition and innovation in the mobile browser market. The final report, released on Wednesday, accuses both companies of anti-competitive behavior that stifles consumer choice and hurts businesses.
CMA: “Mobile Browser Market Is Not Working Well”
The independent review group of the CMA made its assessment that Apple’s Safari and Google’s Chrome dominate the mobile browser landscape at present, with minimal space for other browsers to gain traction. Safari, the report says, holds 88% of browsing on Apple devices and Chrome has a 77% market share on Android devices.
Margot Daly, the Chair of the CMA’s independent inquiry group, stressed the necessity of regulatory action. “After our thorough investigation, we have concluded that competition among various mobile browsers is not functioning well, and this is hampering innovation in the UK,” she said.
Apple Under Fire for Restrictive Policies
Apple is accused of behavior that supposedly makes it hard for other browsers to compete. The CMA report raises several issues of particular concern:
- Apple requires all iOS browsers to use its WebKit browser engine, stifling innovation.
- Safari gets special access to some features not available to other browsers.
- In-app browsing limits block developers from providing alternative experiences.
- Safari is installed by default and made the default browser on iPhones, deterring users from changing.
These policies, the report contends, hinder competitors and restrict the formation of new browser technologies.
Google Also Under Scrutiny
Google, though less restrictive than Apple, has similarly been accused of complicity in sustaining browser monopolies. The CMA’s inquiry cited:
- Chrome being installed as the default browser on most devices running Android.
- Google’s revenue-sharing deals with Apple, in which Google pays Apple a large percentage of its search revenue in return for the privilege of remaining the default search engine on iPhones.
Financial incentives for Google to keep competition at bay, as both firms profit from the existing status quo.
The CMA feels that these circumstances make it hard for other browsers to gain traction, making it even more entrenched as an Apple-Google duopoly.
Apple and Google Respond
Apple defended its practices, arguing that its policies are designed to protect user privacy and security. “We believe in thriving and dynamic markets where innovation can flourish. We have concerns with this report and believe the remedies it discusses would undermine privacy, security, and the overall user experience,” Apple said in a statement.
Google also pushed back against the report, highlighting its commitment to open platforms. “Android has always been an open platform that fosters competition and enables developers to build successful businesses. We remain committed to working with the CMA to establish a regulatory framework that promotes innovation and growth,” a Google spokesperson stated.
While the CMA has not yet announced any immediate enforcement actions, the regulator has launched separate investigations to determine if Apple and Google hold “strategic market status” (SMS) under the UK’s Digital Markets, Competition and Consumers Act. If found to have SMS, both companies could face strict regulatory oversight, including potential fines of up to 10% of their annual global revenue for anti-competitive behavior.
The final ruling on their SMS designation is expected later this year, setting the stage for possible regulatory action that could reshape the mobile browser market.
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