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Apple's rules on what developers can do in browsers are restricting innovation, the UK Competition and Markets Authority has found in its preliminary browser investigation findings
In 2021, the CMA launched its investigation into the mobile ecosystem market, finding that Apple and Google have a duopoly over the mobile ecosystem. While it found that Apple and Google can dictate how browsers work on iOS and Android, the CMA now says Apple is restricting competition with its rules.
The preliminary findings, published on Friday, said Apple’s rules “restrict other competitors from delivering new, innovative features that could benefit consumers.” It also addresses concerns other browser makers have that they “cannot offer the full range of browser features, such as faster loading web pages on iPhone.”
Developers have complained to the investigation that they would like to use progressive web apps as a way to deliver apps to users without having to download them through the App Store.
“Markets work best when competing companies are able to develop and deliver innovative experiences to consumers,” said Margot Daly, chair of the CMA’s independent investigation panel. “Our investigation has previously found that competition between different mobile browsers is not working well and that this is holding back innovation in the UK.”
There were also elements of Apple’s relationship with Google, including how the revenue-sharing agreement reduces the “financial incentive to compete in mobile browsers on iOS.” The way users are given the choice of browser to use was also an issue, as Apple and Google could manipulate the choice to make Chrome and Safari “the most straightforward or simple option.”
The investigation also looked into mobile cloud gaming and concerns about how cloud gaming apps were distributed in app stores, or in Apple’s case, how they were not distributed. Apple made changes during the investigation to allow cloud gaming apps to be sold, and the investigation found “some evidence of such apps emerging.”
As a result, the CMA has concluded that there is no need to intervene in mobile cloud gaming at this time.
In its recommendations following the investigation, the independent panel behind it recommended an investigation into Apple and Google’s mobile ecosystems. This would be done under new rules on competition in digital markets that come into force in 2025.
These include the Digital Markets, Competition and Consumers Act, which would allow the CMA to designate companies as having strategic market status for digital activities and intervene if necessary. These interventions would include an investigation as well as a recommended course of action to improve competitive market conditions.
“Apple believes in thriving and vibrant markets where innovation can thrive,” Apple said in a statement to AppleInsider. “We face competition in every segment and jurisdiction where we operate, and we are always focused on the trust of our users.”
Apple continued: “We disagree with the findings of the report regarding Safari, WebKit and in-app browsing on iOS. We are concerned that the interventions discussed in the report for future review under the DMCA will undermine user privacy and security and hinder our ability to build the types of technologies that make Apple stand out.”
“We will continue to engage constructively with the CMA as their work on this matter progresses.”
Apple’s delayed investigation
The CMA’s investigation was initially launched in November 2022, but quickly stalled in January 2023 when Apple appealed over the legal definition of one word.
It was a shocking temporary victory for Apple, overturned by the Court of Appeal in November 2023.
Despite the victory, the CMA decided to delay reopening its investigation for several weeks, doing so in January.
Mixed Result
The preliminary findings are good and bad for Apple in several ways.
For a start, allowing cloud gaming means the company doesn't have to do more to appease the regulator on that front. The existing cloud gaming policy changes are enough to satisfy the CMA for now.
While mobile cloud gaming is less of a headache for Apple now, other rules around browser activity are still a problem.
In January, EU rules forced Apple to allow third-party browsers to use different browser engines, rather than being forced to use WebKit. While Apple allowed it in EU markets, the rules didn't extend beyond the continent's borders, so WebKit was still mandatory.
The CMA ruling could eventually prompt Apple to do the same for the UK, but again, it won't be something that will impact the rest of the world.
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