UK Antitrust Action Against Apple Focuses on Default Browser Practices, Omits Cloud Gaming Matters

UK Antitrust Action Against Apple Focuses on Default Browser Practices, Omits Cloud Gaming Matters

UK Antitrust Action Against Apple Focuses on Default Browser Practices, Omits Cloud Gaming Matters


# UK Antitrust Actions Loom for Apple Over Default Browser Policies

Apple Inc., a prominent player in the technology sector recognized for its groundbreaking products and services, is on the verge of facing antitrust actions in the United Kingdom. The Competition and Markets Authority (CMA) has tentatively determined that Apple is misusing its dominance over iPhone applications, specifically regarding its default web browser, Safari. This situation parallels similar measures initiated by the European Union, which concluded that Apple’s policies obstruct competition and innovation within the mobile browser arena.

## The Challenge of Default Browsers

Upon configuring a new iPhone, Safari automatically becomes the default web browser. This is similar to the way Android devices default to Google Chrome. Nonetheless, Apple’s regulations extend beyond just default configurations. The company insists that rival web browsers must operate on the same web engine as Safari. This stipulation considerably restricts competing browsers’ ability to provide distinctive features or improvements that could enhance user experience and performance.

The EU’s inquiry into Apple’s conduct found this tactic to be anti-competitive. In response, Apple brought about a modification in iOS 17.4 that encourages users within the EU to select their preferred browser during initial setup. However, this adjustment was confined to EU devices, leaving users in the UK and elsewhere without equivalent options.

The CMA has reinforced the EU’s conclusions, asserting that Apple’s limitations obstruct innovation by hindering other browsers from outperforming Safari in functionality and speed. The CMA’s preliminary report emphasizes concerns from smaller app developers, who wish to implement progressive web apps—an alternative avenue for delivering apps to mobile users without dependency on app store downloads. Regrettably, these technologies have encountered challenges on iOS devices due to Apple’s restrictive policies.

## Apple’s Agreement with Google: An Additional Concern

Apart from its browser policies, Apple is also facing scrutiny over its financial arrangement with Google. Reports suggest that Google compensates Apple approximately $20 billion each year to retain its status as the default search engine in Safari. A recent US federal court ruling characterized this agreement as illegal, stating that it gives Google an unreasonable edge in the search market.

The CMA seems ready to align its conclusions with those from the US judiciary, implying that the revenue-sharing deal between Apple and Google reduces their incentive to compete within the mobile browser sector. This could result in further regulatory action aimed at dismantling monopolistic strategies that suppress competition.

## Cloud Gaming: A Different Narrative

While the CMA’s investigation has spotlighted significant issues regarding Apple’s browser practices and its collaboration with Google, it found no problematic aspects concerning cloud gaming. Apple has recently adjusted its policies to allow third-party entities to provide cloud gaming applications, addressing former concerns about monopolistic conduct in this area.

## In Summary

As the CMA progresses with its investigation, Apple might be required to implement changes similar to those adopted in the EU, enabling users in the UK to choose their default web browser during the setup phase. The results of these inquiries could have extensive ramifications for Apple’s operational practices and the broader technology landscape, potentially promoting a more competitive environment that benefits both consumers and developers.

The persistent examination of Apple’s practices highlights the increasing regulatory scrutiny on major tech firms and their influence in digital markets. As the situation continues to develop, stakeholders will be closely monitoring how these changes evolve and what modifications may be enacted in response to regulatory demands.