CMA eyes Apple and Google over mobile browser dominance

Companies can dictate rules of mobile market

The Competition and Markets Authority (CMA) is gearing up to take on Apple and Google over concerns about their dominance in the mobile browser market.

An independent inquiry commissioned by the CMA has revealed a lack of fairness and choice in mobile browsing, particularly on iOS devices like the iPhone.

The report [pdf] suggests Apple's practices are hindering innovation and limiting consumer options. It says Apple imposes limitations on rival browser developers, preventing them from offering features like faster webpage loading.

The inquiry further observed that progressive web apps, an alternative to traditional app store downloads, are not fully supported on iOS devices; the revenue-sharing deal between Google and Apple reduces the financial incentives for other browser developers; and Apple and Google may manipulate user choices to favour their own browsers.

The CMA's investigation follows its 2021 Mobile Ecosystems Market Study, which identified Apple and Google's duopoly over mobile operating systems, app stores, and web browsers. This dual control allows the companies to dictate the rules of the mobile ecosystem.

The CMA's Digital Markets Unit, which is set to gain new powers in January 2025, is positioned to address these issues. The unit is designed to tackle the dominance of big tech companies and promote fair competition.

"Markets work best when rival businesses are able to develop and bring innovative options to consumers," said Margot Daly, chair of the CMA's inquiry group.

"Through our investigation, we have provisionally found that competition between different mobile browsers is not working well and this is holding back innovation in the UK."

While the group has recommended no further action on cloud gaming, another area of concern, it has urged the CMA to delve deeper into the mobile browser market. A final decision on the matter is expected in March 2025.

The findings align with similar concerns raised by the US Department of Justice (DOJ), which has filed a lawsuit against Google alleging anti-competitive practices in the online advertising market.

In a document filed with a federal court last week, the DOJ proposed selling Google's Chrome browser and imposing strict restrictions on Android to curb its dominance in the search engine market.

The DOJ's action followed a court ruling in August this year that found Google guilty of anti-competitive practices.

"Android's openness has helped to expand choice, reduce prices and democratise access to smartphones and apps," said a Google spokesperson, adding that the company will "continue to engage constructively with the CMA on these matters in the months ahead."

Apple said it disagreed with the CMA group's conclusions regarding its Safari browser and in-app browsing on the iOS operating system, adding that any proposed changes might ultimately compromise user privacy and security.

"We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users," An Apple spokesperson said.

"We are concerned that the interventions discussed in the report for future consideration under the Digital Markets, Competition, and Consumers Act would undermine user privacy and security and hinder our ability to make the kind of technology that sets Apple apart.

“We will continue to engage constructively with the CMA as their work on this matter progresses."