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UK’s competition watchdog finds Apple’s rules stifle competition for its mobile browser
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  • UK’s competition watchdog finds Apple’s rules stifle competition for its mobile browser

UK’s competition watchdog finds Apple’s rules stifle competition for its mobile browser

FP Staff • November 25, 2024, 15:18:58 IST
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The CMA’s investigation comes as the UK strengthens its regulatory capabilities with the Digital Markets, Competition and Consumers Act (DMCC). Similar to the EU’s Digital Markets Act, the DMCC grants the CMA authority to designate major tech companies as having “Strategic Market Status"

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UK’s competition watchdog finds Apple’s rules stifle competition for its mobile browser
Apple has defended its policies, arguing that its restrictions ensure optimal security, privacy, and performance for iOS users. The company claims that third-party browsers can still offer features like ad-blocking and VPNs, maintaining a competitive environment. Image Credit: Reuters

The UK’s CMA or the Competition and Markets Authority, the country’s antitrust regulatory body, has provisionally concluded that Apple’s restrictive policies for mobile browsers are stifling innovation and limiting competition.  

The findings stem from an ongoing investigation into browser competition on iOS and Android platforms, with a particular focus on Apple’s tightly controlled ecosystem.  

The CMA plans to dig deeper into how Apple and Google manage third-party browsers on their platforms, though Apple’s practices have drawn the most scrutiny.

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Apple’s closed ecosystem under fire again

The CMA’s investigation highlights concerns that Apple’s requirement for all iOS browsers to use its WebKit engine restricts third-party developers. This rule, the CMA suggests, prevents other browsers from introducing innovative features, such as faster webpage loading and improved functionalities.  

Smaller app developers in the UK have also voiced frustration, noting that they are unable to fully utilise progressive web apps — an alternative to traditional app stores — because of limitations on iOS devices.

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Apple has defended its policies, arguing that its restrictions ensure optimal security, privacy, and performance for iOS users. The company claims that third-party browsers can still offer features like ad-blocking and VPNs, maintaining a competitive environment. However, the CMA’s findings contradict Apple’s stance, citing complaints from developers who feel constrained by the company’s rules.

UK’s regulatory power boosted by new legislation

The CMA’s investigation comes as the UK strengthens its regulatory capabilities with the Digital Markets, Competition and Consumers Act (DMCC). Similar to the EU’s Digital Markets Act, the DMCC grants the CMA authority to designate major tech companies as having “Strategic Market Status,” acknowledging their entrenched market power.  

This designation enables the regulator to impose stricter requirements and fines of up to 10 per cent of a company’s global revenue for non-compliance.

The CMA noted additional concerns about how Apple and Google present browser choices to users, accusing the companies of manipulating these options to favour their own browsers. The report also flagged a revenue-sharing agreement between the two tech giants, which it argues reduces their financial motivation to compete in the mobile browser space.

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Next steps in the investigation

The CMA is now entering a public consultation phase, inviting comments on its findings until December 13. A final ruling on the case is expected in March 2025. If the CMA’s conclusions hold, Apple may face pressure to relax its browser restrictions, potentially opening the door for greater competition and innovation in the mobile browser market.

This case underscores the growing momentum among global regulators to hold Big Tech accountable for practices that could hinder competition. For Apple, the CMA’s findings signal another regulatory challenge in a series of global antitrust investigations targeting its business practices.

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