For some time now, the business models of big tech companies in different fields have been under the scrutiny of antitrust authorities. Apple and Google have been among the companies hardest hit by lawsuits and regulations. Although both companies are direct rivals in some segments, they also have deals in common. An investigation by a UK regulator found that Apple, in collaboration with Google, is “holding back innovation” in the mobile browser segment.
UK regulator finds Google and Apple are “holding back innovation” in mobile browsers segment
The whole problem seems to revolve around Safari, the native browser on Apple devices. The restrictive policies Apple imposes on third-party browsers on iOS also stem from this issue. Google entered the scene due to a revenue-sharing agreement, which provides it with financial benefits when owners of Apple devices use Chrome. The deal could be reducing Google’s “financial incentives to compete.”
The origin of the conclusions dates back to 2021 when The Competition and Markets Authority (CMA) launched a market study. The goal was to examine the state of Apple and Google’s “dominance” in terms of app stores and browsers. The following year, the investigation formally escalated to an antitrust one. This time, the CMA focused on two main areas: mobile browsers and cloud gaming. The CMA had found evidence of practices potentially damaging to rivals, limiting choices and possibilities for users.
Years later, the CMA’s investigation has come to preliminary conclusions. “We have provisionally found that Apple’s restrictions limit the traffic available to challenger browsers in this type of browsing and also limit the extent to which apps can customise their users’ browsing experience, as companies with millions of users like Meta would like to do,” reads the document.
Third-party browser developers are limited on Apple devices
By “Apple’s restrictions” the CMA refers to Apple’s imposition on external browser developers to use Webkit, the company’s browser engine. Even using WebKit does not guarantee access to all features and functions. The investigation found that third-party browsers have limited levels of access and functionality compared to Safari. This could be preventing third-party developers from being able to compete fairly against Apple’s browser.
The agency ruled out “cloud gaming” during the investigation, focusing only on browsers. Some changes made by Apple in favor of a fairer competition satisfied the CMA.
Regarding Google, a spokesperson for the company offered an official statement. “Android’s openness has helped to expand choice, reduce prices and democratize access to smartphones and apps,” adding that it will “continue to engage constructively with the CMA on these matters in the months ahead,” Google says.
Google is already having its own problems with Chrome in the United States. The US Department of Justice (DOJ) is requesting that the Mountain View giant sell Chrome as a solution to the monopoly situation it is currently facing. Let’s remember that a judge ruled in August that Google represented a monopoly in the field of online search.
U.K.’s Digital Markets Act comes into force in 2025
For now, the CMA’s findings won’t change anything, at least in the short term. However, next year the U.K.’s Digital Markets, Competition and Consumers Act comes into force. The findings could be the basis for potential disciplinary proceedings against both Apple and Google. The final conclusions in the investigation are due in March 2025. In the meantime, the CMA is open to receiving comments from all parties.
