Apple and Google ‘should face investigation over mobile browser duopoly’

An initial inquiry has recommended that the UK’s competition regulator investigate the two firms further.

The mobile browser market in the UK is not working well for businesses and consumers and Apple and Google should be investigated further by the competition watchdog, an initial inquiry has said.

The Competition and Markets Authority’s (CMA) independent inquiry group carried out an in-depth assessment of the mobile browser markets, and has raised concerns about how Apple controls how mobile web browsers work on its devices.

The CMA opened its investigation after its own market study, published in 2021, found Apple and Google have an effective duopoly on mobile ecosystems, across operating systems, app stores and web browsers on mobile devices, which it said meant the two companies were in a position to effectively set the rules on how mobile browsers work on their respective devices.

The independent inquiry group’s initial inquiry found that Apple’s rules in this area restrict competitors from being able to deliver new and innovative features to consumers.

It said concerns had been raised by other browser providers, who said that they are unable to offer a full range of features because of how Apple’s iOS and App Store operate.

In addition, it said Apple and Google can manipulate how users are presented with choices about which web browser to use on their devices to make their own browsers the clearest or easiest option.

As a result, the group has recommended that the CMA prioritises investigating Apple and Google’s activities in mobile ecosystems under new digital markets competition rules coming into force next year.

Margot Daly, chairwoman of the CMA’s independent inquiry group, said: “Markets work best when rival businesses are able to develop and bring innovative options to consumers.

“Through our investigation, we have provisionally found that competition between different mobile browsers is not working well and this is holding back innovation in the UK.

“The analysis set out in this report and a range of potential interventions considered to address the market issues identified by the group merits consideration by the CMA board under its new powers, which have been specifically designed for digital markets.

“Under those new powers, the CMA can consider the case for designating firms with strategic market status, taking account of the interplay between the specific markets that are the subject of this market investigation and Apple’s and Google’s wider mobile ecosystems.”

Elsewhere, the group had also looked at the mobile cloud gaming market in the UK, but found that there was no need for the CMA to intervene at this time.

In response, Apple said: “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.

“We disagree with the findings in the report regarding Safari, WebKit, and in-app browsing on iOS.

“We are concerned that the interventions discussed in the report for future consideration under the Digital Markets, Competition and Consumers Act would undermine user privacy and security and hinder our ability to make the kind of technology that sets Apple apart.

“We will continue to engage constructively with the CMA as their work on this matter progresses.”

By Press Association