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UK antitrust body raises concerns about Apple and Google's mobile browsers

UK antitrust body raises concerns about Apple and Google's mobile browsers

  • a day ago
  • msn.com
  • Keywords: success, danger

The UK antitrust regulator is investigating Apple and Google over their dominant mobile browsers, Safari and Chrome, which hold 88% and 77% market shares respectively. The probe aims to determine if these companies have "strategic market status," potentially leading to competition-enhancing interventions. Both firms argue for open markets but disagree with the report's findings, emphasizing privacy and innovation.

Alphabet Reports

Estimated market influence

Apple

Apple

Negative
Analyst rating: Buy

The CMA found issues with Apple's policies regarding browser access on its devices, leading to competition concerns.

Google

Negative
Analyst rating: N/A

The CMA is investigating Google's Android browser market dominance and potential impact on competition.

Context

Analysis of UK Antitrust Investigation into Apple and Google's Mobile Browsers

Key Findings:

  • Market Dominance:

    • Safari dominates mobile browsers on Apple devices with an 88% market share in 2024.
    • Chrome leads mobile browsers on Android devices with a 77% market share in 2024.

  • CMA Concerns:

    • The Competition and Markets Authority (CMA) inquiry group identified issues with competition in the mobile browser market, particularly regarding Apple's policies for internet access via Safari.
    • Margot Daly, chair of the independent inquiry group, highlighted that competition between mobile browsers is not functioning effectively, stifling innovation.

  • Strategic Market Status (SMS):

    • The CMA is investigating whether Apple and/or Google have "strategic market status" in mobile ecosystems, a designation with a broader scope than the browser market alone.
    • If designated, potential interventions include enhancing competition by allowing rivals to offer new features.

Competitive Dynamics:

  • Apple's Response:

    • Apple emphasized its commitment to dynamic markets and innovation but expressed concerns that proposed remedies could undermine privacy, security, and user experience.
    • The company plans to engage constructively with the CMA.

  • Google's Response:

    • Google highlighted Android's open platform as a driver of choice, reduced prices, and democratized access to smartphones and apps.
    • The company reaffirmed its commitment to open platforms and innovation, pledging cooperation with the CMA.

Market Implications:

  • Potential Interventions:

    • If designated with SMS status, the CMA may impose measures to foster competition, potentially impacting Apple's and Google's market dominance.
    • This could include changes to how browsers are accessed or updated on their respective platforms.

  • Innovation Stifling:

    • The inquiry group noted that lack of effective competition is hindering innovation in the mobile browser sector.
    • Enhanced competition could lead to improved features, better user experiences, and more choice for consumers.

Long-Term Effects:

  • Regulatory Scrutiny:

    • The investigation underscores growing global scrutiny of tech giants' market dominance, particularly in ecosystems where they control both hardware and software.
    • Outcomes may influence similar antitrust reviews elsewhere, setting precedents for competition policy.

  • Industry Impact:

    • A ruling favoring increased competition could open opportunities for third-party browsers and developers, potentially disrupting the current market landscape.
    • Conversely, it may also lead to changes in how Apple and Google manage their ecosystems, affecting app developers and users alike.