The UK's Competition and Markets Authority (CMA) has provisionally found that Apple's policies are "holding back innovation in the browsers we use to access the web on mobile phones." The inquiry group's report highlights Apple's restrictions on competing mobile browsers, forcing them to use Apple's browser engine, Webkit, which limits their ability to differentiate and innovate.

The report also sheds light on a revenue-sharing agreement between Apple and Google, noting that the duo "earn significant revenue" when Google Chrome is used on iOS, reducing their "financial incentives to compete." This finding comes on the heels of the US Department of Justice's (DoJ) recent ruling that Google should divest its Chrome browser, citing the company's illegal monopoly on online search.

The CMA launched a market study in 2021 to investigate Apple and Google's dominance in mobile, including their app stores and browsers. The following year, the regulator confirmed a formal antitrust probe into the "mobile duopoly," focusing on browsers and cloud gaming. While the CMA has dropped the cloud gaming aspect of its probe due to changes Apple has made, many of the other complaints remain.

According to the report, Apple's restrictions limit the traffic available to challenger browsers and restrict the extent to which apps can customize their users' browsing experience. This has a negative impact on competition and innovation, the CMA notes. The regulator provisionally found that this limits competition and choice in terms of the options available to app developers to offer in-app browsing.

An Apple spokesperson has responded to the findings, disagreeing with the report and citing concerns that any changes could "undermine user privacy and security." The company claims it faces competition in every segment and jurisdiction where it operates, and its focus is always on earning the trust of its users.

Google has also responded, highlighting Android's openness and its role in expanding choice, reducing prices, and democratizing access to smartphones and apps. The company says it will continue to engage constructively with the CMA on these matters in the months ahead.

While no immediate changes are expected, the CMA's inquiry notes that the UK's Digital Markets, Competition, and Consumers Act, set to come into force next year, should be used to address these practices. The regulator is inviting further comments on its provisional findings and expects to make a final decision by March 2025.

The CMA's findings have significant implications for the tech industry, highlighting the need for increased competition and innovation in the mobile browser market. As the regulator continues to investigate and shape policy, the industry will be watching closely to see how these developments impact the future of mobile browsing.