The UK’s Competition and Markets Authority (CMA) recently published a report revealing the detrimental effects of Apple and Google’s dominance over the mobile browser market. With Safari holding an 88% share among Apple users and Chrome boasting a 77% share on Android devices, the CMA argues this duopoly is “not working well for consumers and businesses” and is actively “holding back innovation.” Apple’s mobile browser policies, in particular, drew sharp criticism.
Apple’s restrictive policies require all third-party browsers on iOS to utilize the WebKit engine. This effectively renders them mere skins over Safari, severely limiting the potential for unique features and differentiated browsing experiences. This constraint hinders developers from innovating and offering users alternative browser functionalities.
The CMA report also takes aim at Google’s revenue-sharing agreement with Apple, where Google pays a portion of its search revenue generated from iOS devices. This arrangement, according to the report, disincentivizes competition between the two tech giants, ultimately harming consumers who lose out on potential benefits from a more competitive market.
Potential solutions outlined in the report include compelling Apple to allow alternative browser engines besides WebKit and potentially banning the revenue-sharing agreement between Apple and Google. However, immediate action on these recommendations seems unlikely as the CMA is currently engaged in a separate, broader investigation into Apple and Google’s mobile market dominance, with results expected later this year.
Margot Daly, Chair of the CMA’s independent inquiry group, stated, “Following our in-depth investigation, we have concluded that competition between different mobile browsers is not working well, and this is holding back innovation in the UK.”
She further added, “The analysis set out in our report and the range of potential interventions considered to address the market issues we have identified merits consideration by the CMA under its new powers, which have been specifically designed for digital markets. So, I welcome the CMA’s prompt action to open strategic market status investigations into both Apple and Google’s mobile ecosystems. The extensive analysis we’ve set out today will help that work as it progresses.” The full report is available here.
