UK’s Mobile Browser Markets Under Scrutiny

Introduction to the Issue

The UK’s Competition and Markets Authority (CMA) has concluded that the mobile browser markets in the country are not functioning effectively for consumers and businesses, and are instead hindering innovation. The primary focus of the CMA’s criticism is on Apple, specifically its policy requiring mobile browsers to utilize Apple’s WebKit engine, thereby limiting competitors’ ability to differentiate themselves from Apple. Furthermore, the report highlights that Safari has been granted earlier or greater access to key WebKit and operating system functions compared to its competitors. This final report marks the culmination of an investigation that commenced nearly four years ago.

Background and Developments

The CMA previously released a preliminary report in November, but has since withdrawn two issues following updates from Apple and Google. Notably, an Apple software update in December modified the process for users to change their default browser, while Google provided new evidence regarding its prompts designed to encourage Android users to set Chrome as their default browser. Despite these developments, concerns regarding the limitation of innovation and growth persist.

Ongoing Probes and Recommendations

The independent inquiry group responsible for the final report has withheld its recommendation pending the outcome of another ongoing investigation. In January, the CMA initiated an investigation into whether Apple and Google’s mobile ecosystems, including their mobile browsers, should be granted Strategic Market Status (SMS). This designation would empower the CMA with greater regulatory authority over Apple and Google, enabling the issuance of pro-competition directives. If Apple and Google are awarded SMS status, the inquiry group recommends that the CMA implement measures to enhance the competitiveness of other browsers by facilitating the introduction of innovative features and enabling users to actively select their preferred mobile browser, thereby driving competition.

Future Actions and Decision Timeline

It may take until the fall for the CMA to reach a decision regarding Apple and Google’s SMS status. The potential steps the watchdog might take in the interim to address the concerns outlined in the report remain unclear. The situation underscores the ongoing scrutiny of big tech companies and their practices, with regulatory bodies seeking to promote competition and innovation in the digital marketplace.