Introduction to the Investigation

The United Kingdom's mobile browser market is 'not working well for consumers and businesses' according to a final report from Britain's competition watchdog, which says that Apple and Google are largely to blame. An independent inquiry group has concluded its mobile browsers investigation for the Competition and Markets Authority (CMA), identifying Apple's policies around iOS, Safari, and WebKit as making it difficult for third-party web browser providers to compete and restricting the market as a result.

Google's Android mobile ecosystem is also complicit in impeding competition, according to the CMA report, albeit to a lesser extent. The issues flagged by the investigation include Apple requiring all browsers on iOS to run on its WebKit browser engine, giving Safari preferential access to features compared to competing WebKit-based browsers, limitations placed on in-app browsing, and having Safari pre-installed and prominently displayed as the default browser on iPhones.

Findings and Concerns

While users can change the default iPhone web browsing app, investigators say that Safari's designation as the pre-installed default on iPhones reduces user awareness of alternative apps. Investigators found similar concerns regarding Chrome being pre-installed as the default web browser on the vast majority of Android devices.

However, the report notes that both Apple and Google have taken steps to make it easier for users to switch to alternative browsers since the investigation announced its provisional findings in November, which have 'addressed some, but not all, of the concerns relating to choice architecture.' The investigation also found that revenue sharing arrangements that see Google paying Apple a significant share of search revenue in exchange for being the default search engine on iPhones was 'significantly reducing their financial incentives to compete.'

Response from Apple and Google

'Apple believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users,' Apple spokesperson Julien Trosdorf told The Verge. 'We have concerns with this report and believe the remedies it discusses would undermine privacy, security, and the overall user experience. We will continue to engage constructively with the CMA to best address their concerns.' Google has yet to respond to requests for comment on the CMA's report.

Potential Remedies and Next Steps

The CMA has put forward potential remedies aimed at improving competition within the UK's mobile browser market, which include forcing Apple to allow developers to use alternative browser engines on iOS, requiring Apple and Google to offer a browser choice screen during device setup, and prohibiting the Chrome revenue sharing arrangements between the two companies.

These suggestions are currently unenforceable, however, that could change in the coming months. In January, the CMA launched separate investigations into Apple and Google's mobile ecosystems to decide whether to designate them as having strategic market status (SMS) under the Digital Markets, Competition and Consumers Act (DMCC).

NEWS FACTORY

Technology