Apple's Browser Rules Stifle Innovation on iOS, Says UK Regulator

Apple's restrictions on mobile browsers are limiting innovation and holding back new features that could benefit iPhone users, according to provisional findings published today by the UK's Competition and Markets Authority (CMA).

In its report, the CMA's independent inquiry group determined that Apple's Safari browser policies prevent competing browsers from implementing certain features, such as faster webpage loading technologies. The investigation also revealed that many UK app developers would prefer to offer progressive web apps as an alternative to App Store distribution, but Apple's current iOS limitations make this impractical.

Adding to competitive concerns, the regulator highlighted a revenue-sharing agreement between Apple and Google that "significantly reduces their financial incentives to compete" in the mobile browser space on iOS. The CMA also found that both companies can manipulate how users are presented with browser choices, making their own offerings appear as the clearest or easiest options.

"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," said Margot Daly, chair of the CMA's independent inquiry group.

The investigation initially covered both mobile browsers and cloud gaming concerns, but the CMA has decided not to pursue action regarding cloud gaming, noting that Apple has already addressed the primary issue by beginning to allow cloud gaming apps on the App Store.

In its summary of provisional decision, the regulator is recommending that these findings be addressed through the UK's upcoming Digital Markets, Competition and Consumers Act, which takes effect in January 2025. This legislation will give the CMA new powers to designate firms as having "Strategic Market Status" and impose appropriate interventions to promote competition.

The CMA is accepting public comments on its provisional findings until December 13, with a final decision expected in March 2025. Similar investigations into mobile browser competition are currently being conducted by the European Commission and the United States Department of Justice.

Update: Apple provided GeekWebGuides with the following statement:

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

Apple maintains that it fosters robust competition by offering a variety of WebKit-based third-party browsers on the App Store that compete alongside Safari, and that settings are included in iOS that allow users to easily switch their default browser.

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