A study by the UK’s Competition Bureau on Apple and Google’s mobile browsers concluded that Mobile Duopoli’s policies “stonish innovation,” and could also limit economic growth.
“Mobile browsers are apps that provide the main gateway for consumers to access the web on their mobile devices, and therefore, for businesses to reach them with content and products. The issues we identified mean that consumers may be missing out on new features when using their mobile browsers. Also, businesses have limited ability to reach consumers through their browser apps,” the summary of the 611-page final decision report published on Wednesday.
Most of the concerns identified are related to “Apple’s policies determining how to access the mobile browser, how to access the mobile web, and how it works on Apple’s devices,” according to a press release.
These include issues such as Apple requires other browsers on iOS to use the WebKit browser engine. Safari has increased or access to major platform features and rival browsers. This is a Rival Browser that believes it is suppressing the development of PWAS (progressive web apps) for iOS. Due to restrictions within browsing, there are restrictions on app users who click on a link in their rival browser and then to the web. and specific choice architecture issues.
Regarding Google, the survey inquiry group’s concerns are concerned about the revenue sharing arrangement between Mountain View and Apple.
“We found that Apple and Google are making significant profits when their major rival mobile browsers are used by Google on iOS for web searches, if they significantly reduce their financial incentives for competition,” they observe.
But there is no execution yet
Despite this raft of negative discoveries, and despite UK competition concerns, competition enforcement measures are still in sight, despite competition concerns over Google’s Google grip on mobile, which has been traced back many years at this point. The report recommends waiting for special abuse control forces to begin.
These are the powers that are unlocked if they confirm that the aggressive investigation of two tech giants (which opened in January) falls into the scope of antitrust reinforcement powers equipped by the Competition and Markets Bureau (CMA) since major reforms to the competition law targeting digital giants came into effect in January. Therefore, remedies for the identified anti-competitive issues remain in the air.
The report recommends against attempting to use the power of standard market research to improve competition concerns.
Cloud games, which formed part of the market research, were also removed from the survey last November as several changes by Apple were deemed likely to reduce competition concerns.
A report by the Independent Inquiry Group, set up by the CMA when it launched market research on Apple and Google’s mobile grips in November 2022, follows a similar preliminary conclusion last fall. However, the inquiry group says it is no longer concerned about the specific selection screen issue that it has raised previously.
When Apple updated in December, a change to how iOS users switched their default browser resolved concerns they had on that platform. Google also resolved concerns by providing “new evidence regarding the use of prompts to encourage users to set Chrome as the default browser on Android.”
At the same time, the inquiry group has been having problems with design choices for other screen architectures that have said it could make it difficult for users to switch to alternative mobile browsers and Google’s Chrome native browsers to Apple’s Safari and Google’s Chrome native browsers.
Future relief?
The final report suggests potential remedies (or “appropriate intervention”) for concerns about mobile browser competition, as fully described in Appendix D.
The proposed remedies include allowing Apple to use an alternative browser engine, interoperability requirements that require comparable access to iOS features of rival browsers, and banning revenue shares, particularly Chrome.
Additionally, the way Google displays the browser selection screen can be regulated using this approach, including the frequency of default browser pop-ups.
There is no bailout proposed as part of this CMA market research, but it can provide measures on how regulators will ultimately enforce Apple and Google’s mobile duopoly.
It assumes that a digital market research has determined that the strategic market situation (SMS) is what is known as a state. This means that it falls under a special abuse control regime and may be subject to such custom-made intervention. The SMS investigation into Apple and Google is expected to close later this year.
Commenting in a statement, Margot Daly, chairman of the CMA’s Independent Inquiry Group, wrote:
The analysis described in our report and the scope of potential interventions considered to address market issues that identified benefits considerations by CMA, under the new forces specifically designed for the digital market. So we welcome the CMA’s prompt action to open strategic market situation surveys both Apple and Google’s mobile ecosystem. The extensive analysis we have set up today will help its behavior as it progresses.
Apple and Google have been contacted for comments on the inquiry group’s final report.
Here’s Apple’s statement:
“Apple believes in a prosperous and dynamic marketplace where innovation can thrive. We face competition in every segment and jurisdiction in which we operate, and our focus is always on user trust. There are concerns in this report, and we believe that the remedies it discusses will undermine privacy, security, and the overall user experience. We will continue to engage constructively with the CMA and address their concerns best.”
Google also emailed the following statement:
“The openness of Android has helped democratize choices, reduced prices and access to smartphones and apps. We have opened a platform that helps developers build successful businesses, and we will work constructively with the CMA to provide a predictable, evidence-based regulatory regime that will enable UK growth.”
This report has been updated in a Google statement