Bottom line: Regulators worldwide are trying to balance innovation, competition, and user protection in the mobile ecosystem. A UK investigation, in particular, could have far-reaching implications for mobile browser competition, app development, and user experience on iOS devices.

The UK’s Competition and Markets Authority (CMA) has released provisional findings suggesting that Apple’s restrictions on mobile browsers hamper innovation and deprive iPhone users of potentially beneficial features. Its investigation is part of a broader inquiry into mobile ecosystems.

“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 group concluded that Apple’s Safari browser policies prevent rival browsers from implementing some advanced features. One notable example is the restriction on faster webpage loading technologies, which, if allowed, could significantly enhance user experience.

The investigation revealed a strong preference among UK app developers for offering progressive web apps as an alternative to traditional App Store distribution. However, current iOS limitations make this approach impractical, potentially stifling innovation and reducing options for developers and users.

The CMA also has concerns regarding a revenue-sharing agreement between Apple and Google. This arrangement significantly lowers financial incentives to compete in the iOS mobile browser space, potentially limiting the drive for innovation and improvement. The regulator believes Apple and Google can manipulate users’ browser choices. These companies can make their offerings appear as the clearest or easiest options, potentially influencing user decisions and further cementing their market positions.

The CMA recommends addressing these issues through the UK’s upcoming Digital Markets, Competition, and Consumers Act, which will take effect in January 2025. This new legislation will grant the CMA enhanced powers to designate firms as having “Strategic Market Status” and impose appropriate interventions to promote competition.

While the investigation initially covered both mobile browsers and cloud gaming, the CMA has decided not to pursue action on the latter. This decision came after Apple began allowing cloud gaming apps in the App Store, effectively addressing the primary concern in this area.

Apple told MacRumors that it disagreed with the report’s conclusions regarding Safari, WebKit, and in-app browsing on iOS.

“We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users,” it said.

Apple also raised concerns that the potential interventions discussed in the report, which the CMA could implement under the Digital Markets, Competition, and Consumers Act, might undermine user privacy and security and hinder their ability to develop the technology that sets Apple apart in the market. It also pointed out that it offers a variety of WebKit-based third-party browsers on the App Store, which compete alongside Safari, and that iOS includes settings that allow users to switch their default browser, promoting user choice.

The CMA’s investigation is not an outlier. The European Commission and the United States Department of Justice are also conducting similar probes into mobile browser competition, indicating a growing scrutiny of mobile ecosystem practices. A notable recent example is the Justice Department’s proposal that would force Google to sell its Chrome browser to address monopolistic concerns in the search market.

The UK regulator is now accepting public comments on its provisional findings until December 13. It will release its final decision in March 2025.