UK Regulator Criticizes Apple’s Mobile Browser Policies and Google Pact for Hindering Innovation

U.K. Antitrust Authority Provisionally Finds Apple’s Policies Holding Back Innovation

The Competition and Markets Authority (CMA) has provisionally found that Apple’s policies are limiting innovation in the browsers used to access the web on mobile phones. This finding is part of a comprehensive report that focuses not only on Apple but also highlights a revenue-sharing agreement between Apple and Google.

Background: A Long-Standing Investigation

The CMA launched its investigation into Apple and Google’s dominance in the mobile market back in 2021, focusing on practices and policies surrounding their respective app stores and browsers. The regulator confirmed a formal antitrust probe in 2022, citing concerns that these companies could be restricting competition and harming consumers.

Key Findings

The CMA report has identified several key issues with Apple’s policies:

• Limitations on competing mobile browsers: Apple forces competing mobile browsers to use its browser engine, WebKit. This limits what these browsers can do and curbs their ability to differentiate.
• Inequitable access for third-party apps: Browsers that use WebKit have not been given the same level of access and functionality as Apple’s own Safari, which has a negative impact on competition and innovation.
• Restrictions on in-app browsing: Limitations on how third-party apps can leverage so-called "in-app browsing," meaning access to the open web from within native iOS apps.

Impact on Competition and Innovation

The CMA report notes that these restrictions limit the traffic available to challenger browsers and curb their ability to customize users’ browsing experiences. This, in turn, limits competition and choice in terms of options available to app developers.

Response from Apple and Google

Apple has disputed the findings, stating that its policies promote user privacy and security. A Google spokesperson emphasized Android’s openness, which they believe has expanded choice, reduced prices, and democratized access to smartphones and apps.

Next Steps

The CMA is inviting further comments on its provisional findings and expects to make a final decision by March 2025. The report notes that the U.K.’s Digital Markets, Competition, and Consumers Act should be used to address these practices.

Antitrust Efforts in the U.S.

This announcement comes as the Department of Justice (DoJ) in the U.S. has said that Google should divest its Chrome browser after a judge ruled in August that the internet giant was tantamount to an illegal monopoly on online search.

Conclusion

The CMA’s provisional findings mark a significant development in the ongoing antitrust efforts against Apple and Google. While the report notes that nothing will change for now, it sets the stage for potential reforms and regulations aimed at promoting competition and innovation in the mobile market.