UK regulator says Apple, Google blocking innovation in mobile browsers

The United Kingdom’s top antitrust regulator said Friday that an independent inquiry provisionally found that Apple's and Google’s policies for mobile browsers are blocking innovation.

The report recommended that the Competition and Markets Authority (CMA) open investigations into the two tech giants under the U.K.'s digital regulations that will begin next year.

"The independent inquiry group appointed for this market investigation has provisionally
found that a number of markets relating to browsers on mobile devices are not working
well," the report stated. "This means that consumers could be missing out on new features when using mobile browsers; and businesses are limited in their ability to reach consumers through browser apps."

The CMA's findings come just days after the U.S. Department of Justice (DOJ) asked a federal judge to order Google to sell off its Chrome browser.

The CMA report largely focused on Apple, stating the company restricts progressive web apps, which are low-cost, do not need to be downloaded from an app store and are not subject to app store commissions. In doing so, Apple hinders users from accessing certain new features, the watchdog said.

The watchdog said it has concerns about the revenue-sharing arrangements between Google and Apple, stating the two tech giants "earn significant revenue when their key rival's mobile browser is used on iOS," which lessens the financial incentives to compete.

It also took issue with Apple's and Google's product design choices, arguing the tech companies are making it harder for users to choose alternative browsers that are not the default options.

In the U.S., the DOJ argued Google's ownership and control of Chrome, as well as Android, inhibit efforts to open up the market for online search and prevent future monopolization. U.S. District Judge Amit Mehta ruled in August that Google had illegally maintained a monopoly over online search — one of the biggest antitrust decisions in decades.

Kent Walker, Google’s chief legal officer and president of global affairs, described the DOJ’s recommended remedies as a “staggering proposal.” 

“DOJ had a chance to propose remedies related to the issue in this case: search distribution agreements with Apple, Mozilla, smartphone [original equipment manufacturers], and wireless carriers,” Walker wrote in a blog post. 

“Instead, DOJ chose to push a radical interventionist agenda that would harm Americans and America’s global technology leadership,” he added. “DOJ’s wildly overbroad proposal goes miles beyond the Court’s decision. It would break a range of Google products — even beyond Search — that people love and find helpful in their everyday lives.” 

Google is facing a second antitrust trial over its dominance in advertising technology, which is set to wrap up Monday with closing arguments. The DOJ also sued Apple earlier this year, accusing the iPhone maker of monopolizing the smartphone market.

The move is the latest from U.K. regulators to crack down on safety and competition concerns around social media platforms. The CMA is required to publish its final report next March.

The Hill reached out to Apple and Google for comment.