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In brief: A lengthy investigation by UK competition regulators has scrutinized Apple and Google's tight control over mobile browsers, accusing the tech giants of stifling innovation and potentially hindering economic growth. The report suggests that consumers may be missing out on valuable browser features and enhancements as a result.
The massive 611-page report, published this week by the Competition and Markets Authority, pulls no punches in criticizing Apple and Google's restrictive mobile browsing policies. The regulator argues that these rules are "holding back" new browser features from reaching consumers and making it harder for businesses to connect with potential customers online.
Most of the CMA's criticisms focus on Apple's tight control over browsing on iOS devices. The report takes issue with Apple's requirement that all third-party browsers use its WebKit engine, preventing them from offering unique features. It also criticizes Safari for gaining early access to key platform capabilities, ahead of competitors, as well as iOS restrictions on progressive web apps and in-app browsing.
However, Google didn't escape scrutiny either. The CMA raised concerns about the revenue-sharing agreement between Google and Apple, in which the former pays a large portion of the ad revenue generated through Safari and Chrome on iOS back to Apple. According to the report, these payments are so substantial that they "significantly" reduce Google's incentive to compete with Apple's Safari browser.
Despite outlining a lengthy list of concerns, the CMA did not take any enforcement action as part of this investigation. Instead, it recommended waiting for the outcomes of separate probes that were launched earlier this year.
For context, the CMA opened separate investigations into Apple and Google's entire mobile ecosystems in January. One of the objectives is to determine whether the tech giants should be officially designated as having "strategic market status" under the UK's new Digital Markets, Competition and Consumers Act. If this designation is made, the regulator would gain greater powers to take action against them.
The report also proposed potential remedies, including forcing Apple to allow alternative browser engines on iOS, mandating equal access to iOS features for rival browsers, and banning the controversial Google-Apple revenue-sharing agreement. Additionally, it suggested more stringent regulation of how Google displays browser choice screens and the frequency of default browser pop-ups on Android.
Overall, the report offers a glimpse into how competition regulators might attempt to loosen Apple and Google's joint dominance over mobile browsing. With bipartisan frustration in the US, ongoing EU investigations, and rising global scrutiny, the issues highlighted are unlikely to disappear. Whether regulators will take action remains to be seen.
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