The CMA will be able to impose significant fines on corporations that violate a legislation that was passed earlier this year.
According to a “provisional conclusion” by the UK’s Competition and Markets Authority (CMA), Apple’s restricted mobile browser regulations impede innovation. The board of the governing body intends to carry out a thorough analysis of how Google and Apple restrict third-party browsers on their platforms following the release of the results of an independent inquiry group on browser competition on iOS and Android. However, it seems that Apple has been the target of the CMA’s concerns due to its more closed ecosystem.
The foundation of the CMA’s probe is the idea that Apple and Google control a significant portion of the mobile market, giving them the power to dictate how mobile browsers operate. According to the board, third-party browser developers have expressed dissatisfaction about regulations such as Apple’s mandate that they utilize the company’s WebKit browser engine.
“The group has tentatively concluded that Apple’s regulations prevent other rivals from offering fresh, cutting-edge features that could help customers,” the CMA stated. Concerns about their inability to deliver a comprehensive variety of browser functions, like quicker webpage loading on iPhones, have been raised by other browser suppliers.
The UK body will have additional tools to execute its next actions thanks to the Digital Markets, Competition and Consumers Act (DMCC), which was passed earlier this year. With “substantial and entrenched market power” and “a position of strategic significance,” large digital corporations may be granted “Strategic Market Status” under the UK’s version of the EU’s Digital Markets Act (DMA).
Similar to the EU’s version, the bill gives the UK some leverage to bargain with and pressure Big Tech giants that, at least in the US, frequently appear untouchable to make concessions: The UK board will have the authority to sanction violating corporations up to 10% of their worldwide revenue thanks to the DMCC.
The iPhone manufacturer claimed that it limits browser engines to “ensure users get the best security, privacy, and performance on iOS devices,” according to the CMA’s summary of the company’s hearing. This is a well-known claim for anyone who has followed Apple’s prior competition cases. Because third-party browsers with capabilities like ad-blocking, VPNs, and artificial intelligence are available, Apple asserted that there is healthy competition. The business added that it regularly takes developer input into account and that it hasn’t heard any complaints about its current browser guidelines.
The CMA countered that other browser suppliers have pointed out benefits, such as quicker webpage loading, that they are unable to provide on iOS. The board stated, “A lot of smaller UK app developers also told us that they would like to use progressive web apps — an alternative way for businesses to provide apps to mobile users without downloading apps through an app store — but this technology is not able to fully take off on iOS devices.”
Additionally, according to the CMA, Apple and Google are able to “manipulate these choices to make their own browsers the clearest or easiest option” because of the way browser options are displayed to users. It further noted that the two businesses have a revenue-sharing arrangement that “significantly reduces their financial incentives to compete in mobile browsers on iOS.”
The board will next hold a public comment period on its conclusions, which is scheduled to conclude on December 13. The CMA anticipates rendering its final decision in March 2025 following their inquiry.
