UK CMA reports that Apple's mobile browser restrictions limit innovation and thwart new features that could benefit iPhone users
The UK Competition and Markets Authority (CMA) has filed a report alleging that Apple's restrictions on mobile browsers are restricting developer innovation and preventing the development of features that would benefit iPhone users. The CMA is considering investigating Apple.
CMA publishes provisional findings in Mobile Browsers and Cloud Gaming market investigation - GOV.UK
UK watchdog says Apple's rules restrict iOS browser competition
According to the report, an investigation by the CMA's Independent Review Group found that Apple's rules have limited innovation in mobile browsers, including by preventing many small app developers from using 'progressive web apps,' an alternative way to provide apps to mobile users without having to download them through an app store, and by preventing other browser developers from offering features such as 'speeding up the loading of web pages on the iPhone.'
The CMA also noted that revenue-sharing agreements between Google and Apple significantly reduce the financial incentives to compete in the mobile browser market on iOS, and that Google and Apple manipulate the way browser choices are presented to users to ensure that their own products are presented as the most obvious or easiest option. These practices by large companies disadvantage smaller developers and stifle innovation, the CMA said.
The investigation follows a 2021 market investigation that revealed that Apple and Google have a virtual monopoly on mobile device operating systems, app stores, web browsers, etc. The investigation also looked into 'cloud gaming,' raising concerns that Apple does not allow cloud gaming to be offered on the App Store at all. However, as Apple relaxed this restriction during the investigation, the CMA tentatively concluded that 'there is currently no need for the authorities to intervene.'
The CMA's investigation group has provisionally decided to recommend that the CMA Board investigate Apple and Google as a priority under the new digital market competition rules that will come into force in 2025. The CMA has the power to designate companies with strategic market positions related to digital activities and to intervene as appropriate, but to designate a company, the CMA must conduct a formal investigation. If the CMA conducts a formal investigation based on the investigation group's recommendation and intervenes, the designated companies will be required to make some improvements.
'If a formal investigation results in a designation and appropriate intervention, the competitive landscape will improve, allowing a wider range of businesses to invest, innovate and grow. Millions of consumers will have access to faster, more secure mobile browsers,' the research group said. Margot Daly, chair of the research group, said, 'Markets work best when rivals are able to innovate and bring innovative choices to consumers.'
The CMA is inviting comments on its interim findings until 13 December 2024 and plans to make a final decision in March 2025.
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