UK Antitrust Authority Finds Apple's Browser Policies Stifle Innovation

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Bizbooq

November 22, 2024 · 5 min read
UK Antitrust Authority Finds Apple's Browser Policies Stifle Innovation

The UK's Competition and Markets Authority (CMA) has provisionally found that Apple's policies are "holding back innovation in the browsers we use to access the web on mobile phones." The inquiry group's report highlights Apple's restrictive practices, including forcing competing mobile browsers to use Apple's browser engine, Webkit, which limits their functionality and ability to differentiate.The report also notes a revenue-sharing agreement between Apple and Google, stating that the duo "earn significant revenue" when Google Chrome is used on iOS, reducing their "financial incentives to compete." This finding comes on the heels of the US Department of Justice's (DoJ) recent ruling that Google should divest its Chrome browser, citing an illegal monopoly on online search.The CMA launched a market study in 2021 to investigate Apple and Google's dominance in mobile, including their app stores and browsers. The following year, the regulator confirmed a formal antitrust probe into the Android-iOS "mobile duopoly," focusing on browsers and cloud gaming. While the CMA has dropped the cloud gaming aspect of its probe due to changes Apple has made, many of the other complaints remain.According to the report, Apple's restrictions limit the traffic available to challenger browsers and limit the extent to which apps can customize their users' browsing experience. This has a negative impact on competition and innovation, the CMA notes. The regulator is inviting further comments on its provisional findings and expects to make a final decision by March 2025.An Apple spokesperson disagrees with the findings, citing concerns that any changes could "undermine user privacy and security." However, this is a common refrain Apple has used in similar complaints, including the expansive lawsuit launched by the DoJ earlier this year. A Google spokesperson emphasized Android's openness, stating that it will "continue to engage constructively with the CMA on these matters in the months ahead."The CMA's provisional findings highlight the need for regulatory action to address these practices. The UK's Digital Markets, Competition, and Consumers Act, set to come into force next year, could be used to address these issues. While nothing will change for now, the inquiry's findings have significant implications for the future of mobile browsing and competition in the tech industry.The CMA's investigation and provisional findings serve as a reminder of the ongoing scrutiny tech giants face regarding their market dominance and restrictive practices. As the regulatory landscape continues to evolve, companies like Apple and Google will need to adapt to ensure a more competitive and innovative market for consumers.

The report also notes a revenue-sharing agreement between Apple and Google, stating that the duo "earn significant revenue" when Google Chrome is used on iOS, reducing their "financial incentives to compete." This finding comes on the heels of the US Department of Justice's (DoJ) recent ruling that Google should divest its Chrome browser, citing an illegal monopoly on online search.

The CMA launched a market study in 2021 to investigate Apple and Google's dominance in mobile, including their app stores and browsers. The following year, the regulator confirmed a formal antitrust probe into the Android-iOS "mobile duopoly," focusing on browsers and cloud gaming. While the CMA has dropped the cloud gaming aspect of its probe due to changes Apple has made, many of the other complaints remain.

According to the report, Apple's restrictions limit the traffic available to challenger browsers and limit the extent to which apps can customize their users' browsing experience. This has a negative impact on competition and innovation, the CMA notes. The regulator is inviting further comments on its provisional findings and expects to make a final decision by March 2025.

An Apple spokesperson disagrees with the findings, citing concerns that any changes could "undermine user privacy and security." However, this is a common refrain Apple has used in similar complaints, including the expansive lawsuit launched by the DoJ earlier this year. A Google spokesperson emphasized Android's openness, stating that it will "continue to engage constructively with the CMA on these matters in the months ahead."

The CMA's provisional findings highlight the need for regulatory action to address these practices. The UK's Digital Markets, Competition, and Consumers Act, set to come into force next year, could be used to address these issues. While nothing will change for now, the inquiry's findings have significant implications for the future of mobile browsing and competition in the tech industry.

The CMA's investigation and provisional findings serve as a reminder of the ongoing scrutiny tech giants face regarding their market dominance and restrictive practices. As the regulatory landscape continues to evolve, companies like Apple and Google will need to adapt to ensure a more competitive and innovative market for consumers.

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