Apple, Google's Mobile Browser Dominance to be Investigated, Says UK Watchdog CMA

The UK’s antitrust watchdog on Friday said it was consulting on launching an investigation into US technology companies Apple and Google’s “market power” in mobile browsers and Apple’s restrictions on cloud gaming through its app store.

Apple and Google have an “effective duopoly” on mobile “ecosystems” that allows them to exercise a stranglehold over these markets, which include operating systems, app stores and web browsers on mobile devices, the Competition and Markets Authority said in a statement.

“Without interventions, both companies are likely to maintain, and even strengthen, their grip over the sector … further restricting competition and limiting incentives for innovators,” it added.

Mobile web browsers are designed to display web content most efficiently on small screens used on mobile devices such as smartphones or personal digital assistants.

Mobile devices typically have either Google’s Chrome or Apple’s Safari mobile browsers pre-installed and set as default at purchase, giving them a key advantage over rival browsers.

As of February, Chrome and Safari mobile browsers commanded 62 per cent and 26 per cent global market share, respectively, according to figures compiled by Statista.

Last year, nearly 97 per cent of all mobile web browsing in the UK was powered by either Apple’s or Google’s browser engine.

The Cupertino-based iPhone maker does not allow alternatives to its own browsing engine on its mobile devices. The CMA said it is concerned “this severely limits the potential for rival browsers to differentiate themselves from Safari [for example, on features such as speed and functionality] and limits Apple’s incentives to invest in its browser engine”.

This deprives consumers and businesses of the full benefits of this innovative technology, it added.

“When it comes to how people use mobile phones, Apple and Google hold all the cards. As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice,” Andrea Coscelli, the CMA’s chief executive, said.

“We all rely on browsers to use the internet on our phones, and the engines that make them work have a huge bearing on what we can see and do. Right now, choice in this space is severely limited and that has real impacts — preventing innovation and reducing competition.”

The CMA said it had heard concerns from several UK businesses and start-ups which said that the restrictions related to mobile browsers and cloud gaming made it harder for them to innovate and compete.

The proposed market investigation that “will further assess the competition concerns identified to date in both areas and decide what, if any, action is appropriate”.

This could include making legally binding orders requiring changes to be made to Apple’s and Google’s practices, the CMA said.

The CMA on Friday said it is also launching a competition law investigation against Alphabet-owned Google in relation to its app store payment practices. Separately, the CMA has an existing competition law investigation in relation to Apple’s app store terms and conditions, which it opened in March last year.

June 11, 2022