The UK's Competition and Markets Authority (CMA) has concluded a comprehensive investigation into Apple and Google's mobile browser policies, determining that the tech giants' practices are "holding back innovation" and potentially limiting economic growth. The 611-page final report, published on Wednesday, highlights several concerns related to Apple's policies governing mobile browsers on its iOS devices and Google's revenue-sharing arrangements with Apple.

The CMA's investigation, which began in November 2022, focused on the dominance of Apple's Safari and Google's Chrome browsers on mobile devices. The report identifies several issues, including Apple's requirement that third-party browsers use its WebKit browser engine, which limits their ability to differentiate themselves from Safari. Additionally, the CMA found that Safari has greater or earlier access to key platform features, stifling competition and hindering the development of progressive web apps (PWAs) on iOS.

Regarding Google, the CMA's concerns center on the significant revenue-sharing arrangements between Google and Apple, where Google pays Apple a substantial share of search ad revenue earned from traffic on Safari and Chrome on iOS. The report notes that this arrangement reduces Google's financial incentive to compete with Apple, thereby limiting innovation and choice for consumers.

Despite the CMA's findings, no enforcement action is imminent. The report recommends waiting for the outcome of a separate investigation into Apple and Google's grip on mobile, which could lead to the activation of special abuse control powers. These powers, introduced as part of a major UK reform of competition law in January, would allow the CMA to impose bespoke remedies on digital giants found to have Strategic Market Status (SMS).

The CMA's report suggests several potential remedies to address the competition concerns, including requiring Apple to allow the use of alternative browser engines, mandating equivalent access to iOS features for rival browsers, and banning the Chrome revenue share. The report also proposes regulating how Google displays browser choice screens, including the frequency of default browser pop-ups.

In a statement, Margot Daly, chair of the CMA's independent inquiry group, welcomed the CMA's prompt action to open strategic market status investigations into both Apple and Google's mobile ecosystems. Apple and Google were contacted for comment, with Apple expressing concerns that the proposed remedies would undermine privacy, security, and the overall user experience.

The CMA's investigation and report come as part of a broader effort to address concerns over the dominance of tech giants in the digital market. The outcome of the SMS investigations, expected to conclude later this year, will determine whether Apple and Google will be subject to bespoke interventions aimed at promoting competition and innovation in the mobile browser market.

The implications of the CMA's findings and recommendations extend beyond the UK, as regulators and policymakers around the world grapple with the challenges of promoting competition and innovation in the digital economy. As the CMA continues to investigate and address the concerns outlined in its report, the tech industry will be watching closely to see how these developments shape the future of mobile browsing and the digital landscape.