Apple and Google’s mobile browser dominance may face investigation 

The mobile browser duopoly holds back UK’s tech sector and restricts consumer choice, and should be investigated under new powers

The mobile browser market in the UK is not working well for businesses and millions of consumers and Apple and Google should be investigated using new digital market powers, an independent inquiry has said.

The Competition and Markets Authority’s (CMA) independent inquiry group carried out an in-depth assessment of the mobile browser markets, and has raised concerns about how Apple controls how mobile web browsers work on its devices.

The CMA opened its investigation after its own market study, published in 2021, found Apple and Google have an effective duopoly on mobile ecosystems, across operating systems, app stores and web browsers on mobile devices.

Smartphones typically have either Google’s Chrome or Apple’s Safari pre-installed as their default browsers, with a combined market share of about 90% in the UK. The CMA said this meant the two companies were in a position to effectively set the rules on how mobile browsers work on iOS and Android devices.

Margot Daly, chairwoman of the CMA’s independent inquiry group, said: 

‘Markets work best when rival businesses are able to develop and bring innovative options to consumers.

‘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.’

The group is now asking the CMA to prioritise investigating Apple and Google’s mobile ecosystem activities when new digital markets rules come into force next year. 

The Digital Markets, Competition and Consumer Act is expected to come into force in January 2025. This gives the CMA new powers to ensure powerful tech firms treat consumers fairly.

Apple and Google holding back innovation 

The independent inquiry group’s initial inquiry found that Apple’s rules in this area restrict competitors from being able to deliver new and innovative features to consumers.

It said Apple and Google can manipulate how users are presented with choices about which web browser to use on their devices to make their own browsers the clearest or easiest option.

In addition, it said that a revenue-sharing between Google and Apple ‘significantly reduces their financial incentives to compete in mobile browsers on iOS.’

This comes at the same time as specialist competition court gives the go ahead to £7 billion lawsuit from UK consumers over Google’s stifling of competition in the internet search market.

The lawsuit says Google has shut out search engine competition on smartphones and desktop devices by spending billions of pounds on commercial agreements that ensure it is the default search engine on practically all devices in the UK.

Apple disagrees with the findings

In response, Apple said: ‘Apple believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.

‘We disagree with the findings in the report regarding Safari, WebKit, and in-app browsing on iOS.

‘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.’