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Apple is likely to face antitrust action in the UK over Safari being the default web browser on iPhone. The country’s Competition and Markets Authority (CMA) has provisionally concluded that the company abuses its control over iPhone apps.
This is likely to see Apple forced to take the same action it already did in the EU – allowing users to choose their default web browser when first setting up a new iPhone …
Default web browsers
When you set up a new iPhone, your default web browser will be Safari, just as your default browser on an Android phone will be Chrome. Apple went further, by insisting that competing web browsers still use the same underlying web engine as Safari, which effectively prevents other browsers from offering features not supported by Safari, as well as making their browsers faster.
The EU last year concluded that this was anti-competitive, and Apple responded by introducing a change in iOS 17.4 which prompts iPhone users to choose their browser during the initial set-up process.
However, Apple limited this change to EU iPhones. The UK’s competition watchdog has now provisionally reached the same conclusion as the EU – that this harms innovation by preventing other browsers from out-performing Safari.
The group has provisionally found that Apple’s rules restrict other competitors from being able to deliver new, innovative features that could benefit consumers. Other browser providers have highlighted concerns that they have been unable to offer a full range of browser features, such as faster webpage loading on iPhone. Many smaller UK app developers also told us that they would like to use progressive web apps – an alternative way for businesses to provide apps to mobile users without downloading apps through an app store – but this technology is not able to fully take off on iOS devices.
Google deal may also be illegal in the UK
Google pays Apple around $20B a year to be the default search engine in Safari. Back in the summer, a US federal judge ruled that deal illegal, as it gives Google an unfair advantage in the search business.
The CMA seems likely to echo this finding in the UK.
In addition, the group has provisionally found that a revenue-sharing agreement between Google and Apple significantly reduces their financial incentives to compete in mobile browsers on iOS.
No issue with cloud gaming
The CMA was also investigating whether it was legal for Apple to maintain a monopoly on cloud gaming apps. However, the company subsequently changed its policy to allow third-party companies to offer these, so the CMA says there is no longer an issue here.
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