The UK Competition and Markets Authority (CMA) issued a comprehensive investigation report that focuses on the control of Apple and Google on mobile browsers. According to the report, the policies of the two technology giants can limit economic growth by preventing innovation. In particular, the obligation to use Apple on iOS devices and the use of Google’s safari and the income sharing agreements on Chrome have adversely affect the competition.
In the summary of the 611 -page final decision report, “Mobile browsers are the basic applications that enable consumers to access the Internet on their mobile devices. It is also a tool where businesses bring their content and products to users. However, the problems we have detected restrict consumers to be deprived of new features and the access to customers through these platforms. ” statements took place.
Among the criticisms of Apple in the report, the prohibition of the use of alternative browser engines in iOS stands out. The company’s failure to allow technologies other than the webcit browser engine makes it difficult for competing browsers to get a competitive advantage over Apple’s own product Safari. In addition, the earlier or wider access to the basic features on the platform compared to competitor browsers is another element that adversely affects competition.
In addition, it is emphasized in the report that Apple limits the development of Apple’s progressive Web Apps – PWA on iOS. The restrictions that alternative browsers live in freely circulating on the web when users click on a link are also shown as a factor that prevents competition.
Criticism against Google is intensifying around his revenue sharing agreements with Apple. According to the report, Google’s transfer of advertising revenues from Safari and Chrome browsers to Apple reduces financial incentives by weakening the competitive environment. Experts think that these agreements make it difficult for competing mobile browsers to enter the market and prevent competition.
Although the report contains serious criticisms of Apple and Google’s mobile browser policies, there is no official sanction decision yet. CMA is waiting for special competition violations for two technology giants to come into play. Since the new UK Competition Act, which entered into force in January, brings more strict audits to digital markets, various intervention measures can be taken if Apple and Google are evaluated in this context.
However, the report said that the existing market investigation powers may not be enough to solve this problem. CMA emphasizes that traditional market investigation methods may be ineffective and that Apple and Google may continue to develop strategies that disrupt competitive balance. On the other hand, the investigation into the cloud games industry was removed from the scope last November due to some changes made by Apple.
The Independent Investigation Group established by the CMA reported that Apple and Google’s report on 2022 for mobile ecosystems have reached the results similar to the first evaluations published last year. But in December, Apple’s updates made by iOS users in the process of replacing the default browser, allowing some concerns to be resolved. Google also offered new evidence that Android users to identify Chrome as a default browser, and some concerns would get some concerns.
What are the solutions of the UK Competition Authority?
Annexes of the report, Apple and Google’s dominance on mobile browsers to balance various intervention suggestions were included. These suggestions include Apple’s regulation that requires the use of alternative browser engines in iOS, and competing browsers to provide equal access to the features offered by iOS. However, the prohibition of sharing advertising revenues obtained through Safari and Chrome with Apple is also among the suggestions.
It is also recommended to bring new arrangements on how Google offers browser selection screens. It is stated that the necessary changes should be made to remind the default browser preferences more frequently and to choose from more alternatives.
For the time being, the UK Competition and Markets Institution has not been sanctioned by these recommendations. However, if Apple and Google’s positions in the digital market are included in the “Strategic Market Status” (SMS), it is expected that it can be subjected to special regulations and some of these suggestions may become compulsory. CMA is expected to complete the SMS review on Apple and Google by the end of the year.
Margot Daly, the President of the Independent Investigation Group, said in a statement, “The analysis and possible intervention options we offer in our report should be evaluated within the framework of CMA’s new digital market arrangements. For this reason, we welcome the launch of strategic market status investigations for Apple and Google’s mobile ecosystems. ” He gave his statements.
Apple, said in a statement on the issue, competition in every market and said that they keep the user trust in the foreground, he said. The company argued that some assessments in the report did not participate in the report and that the proposed solutions may adversely affect the privacy, security and user experience. Apple said he would continue to be in a constructive dialogue with CMA.