CMA Criticizes Mobile Browser Market Dynamics
The UK’s Competition and Markets Authority (CMA) has raised concerns about the dominance of Apple and Google in the mobile browser market. A provisional report from the CMA inquiry group highlighted significant issues with the current market structure, which it claims hinders innovation and fails to serve UK businesses and millions of smartphone users effectively.
Apple’s Restrictions on Browser Technology
The CMA identified Apple’s restrictions on web access through iPhones as a major barrier to competition. The inquiry found that Apple’s rules prevent rival browsers from introducing new features that could enhance user experience. For example, progressive web apps, which allow developers to deliver app-like functionality without going through app stores, have struggled to gain traction on Apple devices due to these limitations.
Revenue-Sharing Agreement Dampens Competition
The report also flagged a revenue-sharing agreement between Apple and Google as a factor reducing competition in mobile browsers on Apple’s devices. This arrangement, according to the CMA, limits the incentive for both companies to compete more aggressively in this space.
New Regulatory Powers to Address Big Tech’s Influence
The CMA’s Digital Markets Unit, established over three years ago, is now equipped with new powers to address the influence of major tech companies. These powers, set to take effect in January, aim to enable regulatory interventions in markets dominated by big tech players. The CMA inquiry group recommended that these new tools be used to investigate and address the issues in the mobile browser market.
Apple Responds to Findings
Apple has expressed disagreement with the CMA’s provisional findings, defending its Safari browser and the in-app browsing experience on its iOS platform.
Historical Context and Next Steps
The CMA initiated this investigation after concluding in 2021 that Apple and Google maintained a duopoly in mobile ecosystems, including operating systems, app stores, and web browsers.
Margot Daly, chair of the CMA inquiry group, emphasized the importance of addressing these issues under the regulator’s new powers. The CMA is expected to release its final decision on the matter in March 2025.
Cloud Gaming Investigation Concluded
The CMA also reviewed the cloud gaming market but decided against further action, stating that its main concerns in this area had been resolved.
This report highlights growing regulatory scrutiny over the influence of tech giants in digital markets, aiming to foster competition and innovation for the benefit of consumers and businesses alike.
