CMA Final Report: Apple’s Mobile Browser Policies Stifle Competition

The UK’s Competition and Markets Authority (CMA) has delivered its final report on the mobile browser market, criticizing Apple’s policies for limiting competition and innovation.

The WebKit Requirement and Its Impact

According to the CMA’s investigation, Apple’s mandate that all iOS browsers use its WebKit engine is a major roadblock for competitors. This policy prevents rival browsers from offering unique features or optimizations on iPhones and iPads, regardless of their performance on other platforms.

The full report also highlights additional practices that favor Safari, such as:

• Giving Safari exclusive access to certain iOS features.
• Limiting in-app browsing capabilities for competing browsers.
• Pre-installing Safari as the default browser on all iPhones.

Google Under the Spotlight

While Google faced scrutiny for pre-installing Chrome on Android devices, the CMA determined that Apple’s restrictions on iOS have a more significant impact on competition. The investigation also examined the multi-billion-dollar deal between Apple and Google, where Google pays to remain the default search engine on iOS. The CMA noted that this arrangement “significantly reduces their financial incentives to compete.”

Changes Made After Preliminary Findings

Since the CMA’s preliminary findings in November, both Apple and Google have made some adjustments. Apple’s December update, for instance, made it easier for users to change their default browser. While these changes addressed some concerns, the CMA stated they did not resolve all issues around user choice and competition.

Proposed Remedies

To tackle the remaining problems, the CMA suggests:

• Allowing alternative browser engines on iOS.
• Introducing a browser choice screen during device setup (similar to the EU model).
• Restricting the revenue-sharing deal between Apple and Google.

These recommendations are not enforceable yet. The CMA is conducting separate investigations to decide if Apple and Google should be designated as having “strategic market status” (SMS) under the UK’s Digital Markets, Competition and Consumers Act.

What SMS Designation Could Mean

If Apple and Google are granted SMS designation, they would face stricter regulations, including legally binding conduct requirements. Non-compliance could result in penalties of up to 10% of their global annual revenue.

Update on Cloud Gaming

The CMA’s investigation into cloud gaming concluded without further action. Apple made policy changes during the inquiry, resolving earlier concerns about its App Store restrictions.

Regulatory Scrutiny Beyond the UK

The CMA’s findings align with investigations by other global regulators, including the European Commission and the United States Department of Justice, both of which are also examining competition in the mobile browser market.

Stay tuned as the CMA’s separate investigations progress and potentially reshape the mobile browser landscape.

Amit Gohar