Amid growing scrutiny over browser monopolies in the United States, the United Kingdom’s Competition and Markets Authority (CMA) is considering launching an investigation into the mobile browser market, focusing on Apple Inc. AAPL and Google by Alphabet Inc. GOOGL GOOG. This potential probe could further challenge the duopoly’s grip on the market.
What Happened: The UK’s CMA has raised concerns about the current market dynamics, particularly regarding Apple’s policies, Reuters reported on Friday. The inquiry group has provisionally identified issues, suggesting that Apple’s rules may hinder innovation by restricting competitors from introducing new features on iPhones. Smaller British app developers reportedly face challenges in fully utilizing progressive web apps due to Apple’s device limitations, which offer an alternative to traditional app store downloads.
The report also pointed out a revenue-sharing agreement between Apple and Google, which allegedly reduces their motivation to compete in the mobile browser space on Apple devices. The CMA’s Digital Markets Unit, empowered to regulate big tech, is set to address these issues when its new regime begins in January.
Apple has contested the CMA’s findings, arguing that the proposed interventions could compromise user privacy and security. The CMA plans to make a final decision on the matter by March, while no further action is expected on cloud gaming as previous concerns have been resolved.
Why It Matters: The potential investigation by the CMA comes at a time when Google is facing significant antitrust scrutiny in the United States. The U.S. Department of Justice has demanded that Alphabet Inc. divest its Chrome browser to dismantle its monopoly on online search. This move is part of broader efforts to restore competition in the search market.
Additionally, the antitrust ruling threatens Google’s lucrative $20 billion agreement with Apple, which makes its search engine the default on iPhones. This agreement has been crucial to Apple’s financial performance, highlighting the intertwined interests of these tech giants.
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