The Competition and Markets Authority’s (CMA) final report into the mobile browser market has found innovation is being held back by a lack of competition, which could be limiting growth in the UK.
Margot Daly, chair of the CMA’s independent inquiry group, said: “Following our in-depth investigation, we have concluded that competition between different mobile browsers is not working well, and this is holding back innovation in the UK. I welcome the CMA’s prompt action to open strategic market status investigations into both Apple and Google’s mobile ecosystems. The extensive analysis we’ve set out today will help that work as it progresses.”
The final report highlights Apple’s policy that third-party web browsers need to use its underlying browser engine called WebKit, which, the CMA said, determines what competing mobile browsers can do on iOS.
“Apple’s own mobile browser Safari has or has had greater or earlier access to key functionalities from the operating system and Apple’s WebKit browser engine, compared to competing mobile browsers. This has a negative impact on competition and innovation,” the CMA report stated.
The CMA investigation also found Apple appears to be holding back progressive web apps (PWAs), described in the report as “lower cost and easier for developers to build” since they can run on any operating system and do not need to be listed on an app store. This means Apple is unable to charge a commission for hosting them on its App Store, which it does with iOS apps.
While the CMA considered submissions from Apple, in which it said browsers must use WebKit because allowing alternative browser engines could raise security, privacy and performance risks, the regulator felt these risks could be managed in other ways.
The report also found that alternative browser engines perform similarly to WebKit on security outcomes and that Apple’s current restriction prevents mobile browsers competing and innovating on security and privacy features, for example by implementing security updates more frequently than Apple’s architecture currently allows.
Another issue noted in the report is the inability for iOS apps to offer in-app browsing functionality – something that is possible on Android. Meta told the CMA that in-app browsing could improve user experience, security and performance. While it has developed this functionality on its Android app, Meta told the CMA that it cannot develop these features on iOS currently because Apple’s rules require apps to use Apple’s own technology – including its WebKit browser engine.”
Looking at Google’s product design choices, the CMA said Google had made it significantly harder for consumers to drive competition by actively choosing which browser they use.
“Google’s control of the Android operating system means it is able to determine key design decisions such as which products are placed prominently on a user’s screen and which apps are treated as the ‘default’ option. We have seen evidence that this is happening in relation to how browser options are presented when users first get their device, and again later, while they are using it. Google uses factory setting agreements with device manufacturers who use Google’s Android operating system,” the report stated.
