The UK’s Competition and Markets Authority (CMA) has concluded that Apple and Google are stifling innovation in the mobile browser market. This follows a comprehensive study of the sector, which found that the market was not functioning effectively for businesses and consumers. The CMA report outlines several anti-competitive practices by the two technology giants that stifle competition and may constrain economic growth.
Apple’s policies have been discovered to be a major hindrance to innovation. Apple compels all iOS browsers to use its WebKit browser engine, which grants Safari special access to features compared to other browsers. This discourages third-party browsers from differentiating and offering more features. Safari is also preinstalled as the default browser on iPhones and Apple restricts in-app browsing, curbing the ability of other browsers even more.
Google’s Chrome, the pre-installed browser on most Android phones, also helps reduce competition. Google was found to pay Apple a considerable percentage of search revenue to be the default search engine on iPhones, according to the CMA. This reduces Google’s economic incentive to compete with Apple in the browser market significantly.
Safari and Chrome’s market dominance in each of their ecosystems is overwhelming. Safari was the leader with 88% of Apple device browsing usage in 2024, while Chrome maintained 77% of Android device usage. This duopoly has its impact significantly on innovation because customers and businesses are possibly denied innovative functionality and features that other browsers could offer.
The CMA has proposed several remedies to enhance competition in the market for mobile browsers. They involve requiring Apple to allow alternative browser engines on iOS and requiring Apple and Google to provide a browser choice screen during device setup. The CMA also advises preventing revenue-sharing arrangements between the two companies. These proposals are not currently enforceable, though.
In response to the report, Apple protested that remedies suggested would encroach on privacy, security, and the overall user experience. Apple is certain of healthy markets that promote innovation and notes it competes in every segment in which it’s present.
The CMA has launched separate investigations into Apple and Google to determine if they possess “strategic market status” under the Digital Markets, Competition and Consumers Act. If they are given such status, both companies would be required to meet more stringent antitrust requirements and face potential fines of up to 10% of their annual turnover for non-compliance. The investigations are expected to conclude later this year.
In summary, the report of CMA indicates the importance of more competition in the world of mobile browsers to spur innovation and benefit both consumers and firms. Ongoing investigations of the market status of Apple and Google will play a critical role in defining the UK’s future regulatory landscape for the tech giants.
