An independent investigation team in the UK has concluded an investigation into mobile browsers by the Competition and Markets Authority (CMA). The group's findings suggest that the country's mobile browser market is not working for consumers and businesses, largely due to the dominance of Google and Apple's Chrome and Safari, respectively. The Verge reports.
The independent group found Apple's policies on iOS, Safari, and WebKit to be making it difficult for third-party browser developers to compete, limiting the market. At the same time, Google's Android mobile ecosystem also creates obstacles to competition, but to a lesser extent.
"Following our in-depth investigation, we have concluded that competition between different mobile browsers is not working well, and this is holding back innovation in the UK. I welcome the CMA’s prompt action to open strategic market status investigations into both Apple and Google’s mobile ecosystems. The extensive analysis we’ve set out today will help that work as it progresses," said Margot Daly, Chair of the CMA’s Independent Panel.
Among the issues the group cited is Apple's requirement for iOS browser developers to use the WebKit engine, which gives Safari an advantage in accessing more features than its competitors. There are also limitations on the ability to embed browsers in apps, and Safari is the default browser on the iPhone. While users can change their default browser, most still stick with the one that's already installed on their smartphone.
Google has been found to have similar problems. The independent group also notes the fact that Chrome is pre-installed on most Android devices. The investigation also found that a revenue-sharing arrangement, under which Google pays Apple a significant share of search revenue in exchange for the company's search engine being the main engine in Safari, "significantly reduced their financial incentives to compete."
The report also notes that since the initial findings of the investigation were released in November, both companies have taken steps to facilitate the transition to alternative browsers, which has partially resolved some of the issues. The group proposes a number of measures to improve competition, including Apple allowing developers to use alternative browser engines on iOS. In addition, both companies should offer users a browser selection screen when they first set up their device and stop sharing revenue. While these proposals are not legally binding, this could change in the future.
In addition, in January, the CMA opened another investigation into the mobile ecosystems of Apple and Google. The aim of this investigation is to determine whether both companies have Strategic Market Status (SMS) under the Digital Markets, Competition and Consumer Act (DMCC), which is the EU's equivalent of the Digital Markets Act (DMA).
If companies are found to be SMS, they could be subject to "behavioral requirements" aimed at combating anti-competitive practices. In the event of a breach of the DMCC, companies could face fines of up to 10% of their annual turnover. In addition, the CMA will be able to legally enforce its proposed measures and require Google and Apple to comply with them. However, the investigation is currently ongoing and is expected to conclude later in 2025.