The U.K.’s Competition and Markets Authority has found that Apple is restricting competition in the country by limiting the use of rival browsers on its iOS devices and effectively requiring developers to use its WebKit browser engine. This, and a number of other concerns, is “holding back innovation and could be limiting growth in the UK.”
Apple and Google own the two most popular mobile operating systems in the world, iOS and Android, meaning they are easily able to push their own browsers, Safari and Chrome, onto their users. If Google and Apple don’t take active steps to allow users to discover third-party browsers, they will never have any real competition, and therefore won’t be incentivised to innovate and provide the best possible products. They can also prevent third-party browsers from offering comparable or better service.
How Apple’s restrictions impact competition
Currently, all iOS browsers must use WebKit, which the CMA’s independent inquiry group says limits differentiation and inherently prevents them from matching Safari’s functionality and access. The group also found that Apple limits the amount of traffic and customisation options available for in-app browsing in third-party apps. Additionally, Apple receives significant payments from Google to maintain Google Search as the default search engine on Safari, a deal that reduces both companies incentives to compete in the browser market.
On March 12, the CMA published its final report on the investigation into mobile browsers and cloud gaming markets in the U.K.. It confirmed all the concerns it highlighted back in November when it published its provisional findings, stating that its primary concerns remain focused on browser restrictions, while noting fewer issues in the cloud gaming market.
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Regulatory efforts to promote fair competition
Since the provisional report, Apple has released iOS 18.2 which makes it easier to switch the default browser from Safari, and Google showed how it limits the prompts that encourage users to set Chrome as default. Nevertheless, it still has some concerns relating to Safari and Chrome being pre-installed on Apple and Android devices, restricting user choice.
The investigation was opened in 2021 when the CMA ruled that Apple and Google have an “effective duopoly on mobile ecosystems, including operating systems, app stores, and web browsers on mobile devices.” After the provisional report was published, Apple was concerned that making the recommended changes would “undermine user privacy and security.” Nevertheless, Apple has announced plans to allow browser engines other than WebKit on iOS and iPadOS in the EU due to the Digital Markets Act, though full implementation remains to be seen.
In January, Google and Apple were announced as the first companies investigated for potential Strategic Market Status under the new U.K. Digital Markets, Competition and Consumers Act. If Google or Apple receives the designation, bespoke conduct requirements could be drafted for the company to follow, preventing anti-competitive practices in areas such as mobile ecosystems. The report recommends that any interventions should specifically ensure third-party browsers can innovate freely and allow users to choose their default browser.
