CMA says Apple's browser policies hinder innovation

The Competition and Markets Authority (CMA) announced on Friday that it has provisionally found that Apple’s policies on mobile browsers hinder innovation, impacting UK businesses and millions of users.

Its findings, part of an ongoing investigation into mobile browser markets, recommended prioritising further scrutiny of Apple’s and Alphabet subsidiary Google’s activities under forthcoming digital market regulations.

The investigation, initiated after the CMA’s 2021 Mobile Ecosystems Market Study, highlighted Apple and Google’s dominance over mobile ecosystems, including operating systems, app stores, and browsers.

The inquiry found that Apple’s restrictions limited competitors' ability to develop advanced browser features, such as faster loading speeds, and constrained the adoption of progressive web apps - an alternative to traditional app stores.

A revenue-sharing deal between Apple and Google further diminished incentives to compete in the iOS browser market.

Apple and Google’s practices around browser choice were also criticised, with evidence suggesting they made their browsers the most accessible options for users.

Regarding mobile cloud gaming, the CMA noted Apple’s recent policy changes now allowed cloud gaming apps on its App Store, alleviating prior concerns.

As a result, the inquiry found no need for further action in that area.

The CMA’s inquiry group recommended leveraging new digital market powers under the Digital Markets, Competition and Consumers Act, set to take effect next year.

That legislation would enable the CMA to designate firms with ‘Strategic Market Status’ (SMS) and enforce interventions to foster competition.

“Markets work best when rival businesses are able to develop and bring innovative options to consumers,” said Margot Daly, chair of the CMA’s independent inquiry group.

“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 analysis set out in this report and a range of potential interventions considered to address the market issues identified by the group merits consideration by the CMA board under its new powers, which have been specifically designed for digital markets.

“Under those new powers, the CMA can consider the case for designating firms with strategic market status, taking account of the interplay between the specific markets that are the subject of this market investigation and Apple’s and Google’s wider mobile ecosystems.”

The CMA invited feedback on its provisional findings by 13 December 13, with a final decision expected next March.

Reporting by Josh White for Sharecast.com.