Apple and Google face increased scrutiny over their dominance in mobile browsers.
A competition watchdog in the UK has reported on the dominance of Apple and Google in the mobile browser market, stating that this situation is hindering innovation.
A report from the UK's antitrust authority, the Competition and Markets Authority (CMA), has revealed that Apple and Google hold such significant dominance in the mobile browser market that it harms users, who may be missing out on new features. According to the CMA, 88% of Apple users use Safari, while 77% of Android users opt for Chrome. This situation, according to the agency, “is not working well for consumers and businesses,” and is also “stifling innovation.” In particular, Apple’s policies regarding mobile browsers have come under criticism.
Apple has faced criticism for its restrictive regulations related to mobile browsers. While users can install browsers other than Safari on their devices, these can only use Apple's WebKit engine. This turns them into mere layers for Apple's browser, limiting the features that can be offered in a mobile browser.
On the other hand, the report also questions a revenue-sharing agreement between Google and Apple, where Google pays Apple a portion of its search revenues generated by users browsing on an iOS device. This agreement provides both companies with an incentive not to compete, which is detrimental to users.
The report proposes several suggestions for improving the situation, such as forcing Apple to allow different browser engines besides WebKit or prohibiting the revenue-sharing agreement between the two companies. However, it does not appear that these recommendations will be implemented soon, as the CMA continues an additional investigation into the mobile dominance of Apple and Google, which is expected to conclude by the end of this year.
Margot Daly, chair of the CMA's independent research group, stated: “Following our extensive investigation, we have concluded that competition among different mobile browsers is not functioning properly, and this is stifling innovation in the UK. The analysis presented in our report and the range of potential interventions being considered to address the market issues we have identified deserve the CMA's attention under its new powers specifically designed for digital markets. Therefore, I welcome the CMA's swift action to launch investigations into the market status of Apple and Google’s mobile ecosystems. The extensive analysis we have presented today will support that work as it progresses.”