Key Points
- The UK’s CMA highlights concerns about Apple and Google’s duopoly in the mobile browser market, suggesting it hinders competition and innovation.
- Apple’s iPhone policies limit the use of Progressive Web Apps (PWAs), preventing smaller developers from offering alternative app experiences.
- Apple disagreed with the findings, arguing that proposed interventions could undermine user privacy, security, and its unique technology offerings.
- The CMA has decided that no further action is needed regarding cloud gaming, as the key issues have been addressed.
The UK’s Competition and Markets Authority (CMA) has raised concerns that Apple and Google’s dominance in the mobile ecosystem is stifling innovation, particularly in the mobile browser market. The CMA’s inquiry group has provisionally found that the current market structure does not benefit UK businesses or consumers, highlighting Apple’s restrictive policies on mobile browsing as a significant issue.
The CMA’s findings point to Apple’s rules on its iPhone operating system, which limit competitors’ ability to introduce new features that could enhance the user experience. One of the main concerns is the challenge smaller UK app developers face, particularly those wishing to utilize Progressive Web Apps (PWAs)—an alternative to traditional mobile apps that don’t require downloads through an app store.
Further complicating the issue is a revenue-sharing agreement between Google and Apple, which the CMA claims has reduced the incentives for both companies to compete in the mobile browser space. This agreement, which results in Google being the default search engine on Safari and other Apple applications, may discourage both companies from introducing groundbreaking improvements to their browsers.
The CMA’s Digital Markets Unit, which has been empowered with new regulatory powers to tackle the influence of big tech companies, has said the matter should be investigated further once its new regime comes into force in January. However, Apple has disagreed with the findings, arguing that the proposed interventions could compromise user privacy and security. The company emphasized that its policies are designed to safeguard user experience and differentiate Apple technology.
The investigation is expected to continue until March 2025, when the CMA decides on potential interventions. Additionally, the inquiry group has stated that no further action is necessary regarding cloud gaming, as the primary concerns in this area have been addressed.
