Introduction to the Issue

The UK's Competition and Markets Authority (CMA) has determined that the country's mobile browser markets are not working well for consumers and businesses, and are holding back innovation. The CMA's investigation, which began nearly four years ago, has led to the conclusion that Apple's policies are a major contributor to this issue.

One of the main concerns is that Apple requires mobile browsers to use its engine, WebKit, which limits the ability of competitors to differentiate themselves from Apple. This has resulted in a lack of innovation and choice for consumers. The CMA also found that Safari has received access to key functions of WebKit and the operating system earlier or to a greater extent than its competitors.

Investigation and Findings

The CMA released a preliminary report in November, but has since removed two issues thanks to updates from Apple and Google. In December, a software update at Apple changed how people can swap their default browser, while Google shared new evidence around its prompts created to encourage Android users to have Chrome as their default browser.

Despite these updates, the concerns around limiting innovation and growth remain. The independent inquiry group in charge of the final report recommends that the CMA impose measures to enhance the ability of other browsers to compete, such as offering new and innovative features to consumers and enabling users to actively choose their preferred mobile browser.

Next Steps

The CMA has begun investigating whether Apple and Google's mobile ecosystems, including their mobile browsers, should be given Strategic Market Status (SMS). This designation would allow the CMA to have greater regulatory powers over Apple and Google, as well as issuing pro-competition directives.

If Apple and Google do receive an SMS designation, the inquiry group recommends that the CMA take steps to mitigate the concerns outlined in the report. It could take until the fall for the CMA to make a decision on Apple and Google's SMS status.