The UK’s mobile browser market is “not working well for consumers and businesses”, the UK’s antitrust authority has ruled, and it blames Apple and Google.
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An independent expert group has completed a study of the mobile browser market for the UK Competition and Markets Authority (CMA) – it found that Apple’s policies on iOS, Safari and WebKit make it difficult for third-party browser developers to compete, thereby holding back the market. According to experts, Google’s Android mobile ecosystem also creates obstacles for competitors, although to a lesser extent.
Apple requires all iOS browsers to run on its WebKit engine, but its own pre-installed Safari browser has preferential access to features over alternatives, and its designation as the default browser reduces user awareness of other products. A similar situation has been found with Google Chrome, which is the default browser on the vast majority of Android devices. However, Apple and Google have taken steps to make it easier for users to switch to alternative browsers, following the announcement of preliminary findings in November. The investigation also found that the fees Google pays Apple for making its operating system the default on iPhones “significantly reduce[s] the financial incentive to compete.”
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Based on its findings, the CMA has put forward remedies aimed at improving the competitive environment in the UK mobile browser market. These include Apple being ordered to allow third-party developers to use alternative browser engines on iOS; Apple and Google being ordered to display a browser selection screen to users during device setup; and the companies being ordered to terminate their agreement to pay out advertising revenue. These proposals are currently unenforceable, but this could change in the coming months.
In January, the CMA also launched reviews of the Apple and Google mobile ecosystems to determine whether they should be granted strategic market status (SMS) under the Digital Markets, Competition and Consumer Act (DMCC). Like the European Digital Markets Act (DMA), the law gives the UK authority the power to impose tougher antitrust requirements on companies with “significant and entrenched market power.” These companies could be ordered to take specific actions to prevent anti-competitive behaviour; breaches of the DMCC regulations could result in fines of up to 10% of a company’s annual turnover.
«”Our in-depth investigation has concluded that competition between different mobile browsers is not working well and is holding back innovation in the UK. I welcome the CMA’s swift action to launch strategic inquiries into the market status of the Apple and Google mobile ecosystems. The extensive analysis we have set out today will help that work as it progresses,” said Margot Daly, chair of the CMA’s independent review panel.