An inquiry group established by the U.K.’s antitrust authority has recently made a significant discovery. It has provisionally determined that Apple’s policies are having a negative impact on innovation in mobile phone browsers. This finding comes at a crucial time, as the Department of Justice in the U.S. has also taken action against Google's Chrome browser.

Unraveling the Impact of Apple's Browser Policies on Innovation

Background and Launch of the Market Study

Back in 2021, the Competition and Markets Authority (CMA) initiated a market study to examine Apple and Google's dominance in the mobile space. This included an in-depth look at their app stores and browsers. The following year, a formal antitrust probe was launched, specifically focusing on browsers and cloud gaming. The regulator had concerns that these practices could be restricting competition and harming consumers.

Over time, various aspects of Apple's policies have come under scrutiny. One of the key issues is that Apple forces competing mobile browsers in the U.K. to use its browser engine, WebKit. This limits the capabilities of these browsers and curbs their ability to differentiate. Browsers using WebKit do not have the same level of access and functionality as Apple's own Safari, which has a significant impact on competition and innovation.

Moreover, limitations on how third-party apps can leverage in-app browsing also pose a problem. This means that access to the open web from within native iOS apps is restricted, reducing the options available to app developers and users.

Findings and Apple's Response

The report notes that Apple's restrictions limit the traffic available to challenger browsers and also limit the extent to which apps can customize their users' browsing experience. This, in turn, limits competition and choice in terms of in-app browsing options.

An Apple spokesperson strongly disagreed with the findings, arguing that any changes could undermine user privacy and security. The spokesperson emphasized that Apple believes in thriving markets where innovation can flourish and that they face competition in every segment. They are concerned that the proposed interventions could hinder their ability to make unique technology.

Google's Perspective

A Google spokesperson stated that Android's openness has led to expanded choices, reduced prices, and democratized access to smartphones and apps. They will continue to engage constructively with the CMA on these matters.

Implications and the Way Forward

For now, nothing will change immediately. However, the U.K.’s Digital Markets, Competition and Consumers Act, which is set to come into force next year, provides an opportunity for the CMA to address these practices. The CMA is inviting further comments on its provisional findings and expects to make a final decision by March 2025.

This ongoing inquiry highlights the importance of competition in the mobile technology space and the need to ensure that innovation is not stifled. It remains to be seen how these issues will be resolved and what impact the upcoming regulations will have.