Apple's browser rules deemed anticompetitive, says UK competition body

Apple's rules about what developers can do within browsers is limiting innovation, the UK's Competition and Markets Authority has determined, as part of its provisional findings from its browser investigation.

In 2021, the CMA launched its Mobile Ecosystems Market Study, determining that Apple and Google had a duopoly in the realm of mobile ecosystems. While it was found that Apple and Google were in a position to determine how browsers work on iOS and Android, the CMA now says that Apple does restrict competition because of its rules.

The provisional findings, released on Friday, say that Apple'd rules "restrict other competitors from being able to deliver new, innovative features that could benefit consumers." It also refers to the concerns of other browser producers who are "unable to offer a full range of browser features, such as faster webpage loading on iPhone."

Developers complained to the probe that they would like to use progressive web apps as a form of providing apps to users without downloading via the App Store.

"Markets work best when rival businesses are able to develop and bring innovative options to consumers," said CMA independent inquiry group chair Margot Daly. "Through our investigation, we have provisionally found that competition between different mobile browsers is not working well and this is holding back innovation in the UK."

There were also elements about Apple's relationship with Google, including how the revenue-sharing agreement reduces "financial incentives to compete in mobile browsers in iOS." The way users are presented with a choice of which browser to use was a problem, too, with Apple and Google able to manipulate choices to make Chrome and Safari the "clearest or easiest option."

The probe also examined mobile cloud gaming, and concerns over how cloud gaming apps were distributed in app storefronts, or in Apple's case, how they weren't. Apple did make changes during the course of the investigation to allow cloud gaming apps to be sold, and the probe has seen "some evidence of such apps emerging."

Because of this, the CMA has concluded that there is no need to intervene in mobile cloud gaming affairs for the moment.

In its recommendations following the probe, the independent group behind it has advised for an investigation into Apple and Google's mobile ecosystems. This should be done under new digital markets competition rules that will come into force in 2025.

This includes the Digital Markets, Competition, and Consumers Act that will allow the CMA to designate companies as having a Strategic Market Status for digital activities, and to intervene when necessary. These interventions will include an investigation, along with a recommended course of action to improve competitive market conditions.

"Apple believes in thriving and dynamic markets where innovation can flourish," Apple said in a statement to AppleInsider. "We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users."

Apple continued "We disagree with the findings in the report regarding Safari, WebKit, and in-app browsing on iOS. We are concerned that the interventions discussed in the report for future consideration under the Digital Markets, Competition, and Consumers Act would undermine user privacy and security and hinder our ability to make the kind of technology that sets Apple apart."

"We will continue to engage constructively with the CMA as their work on this matter progresses."

An Apple-delayed probe

The CMA probe was originally started in November 2022, but it quickly became stuck in January 2023, when Apple filed an appeal over the legal definition of a single word.

It was a shock temporary win for Apple, overturned by the Court of Appeal in November 2023.

Despite winning, the CMA decided to delay the restart of the investigation for a few weeks, doing so in January.

A mixed result

The preliminary findings are good and bad for Apple, in a few ways.

For a start, the clearance on cloud gaming means it doesn't have to do more to appease the regulator on that front. Its existing cloud gaming policy changes is enough to satisfy the CMA for the moment.

While mobile cloud gaming is less of a headache for Apple now, its other rules over browser activity is still a problem.

In January, EU regulations forced Apple into allowing third-party browsers to use different browser engines, instead of being forced to use WebKit. While Apple did allow that to be the case in EU markets, the regulations didn't stretch beyond the continent's borders, so WebKit continued to be mandated.

The CMA's ruling could eventually prompt Apple into doing the same for the UK, but again it wouldn't be something that affects the rest of the world.