The Competition and Markets Authority (CMA) has issued a new report highlighting faults in the mobile browser market, taking particular aim at Apple and, to a lesser degree, Google.

The report identified a number of markets holding back innovation and ultimately limiting growth in the UK. Most concerns identified relate to Apple’s policies which determine how mobile browsers work on the company’s devices.

According to an independent inquiry, Apple’s policies on its iOS software is making it challenging for third-party web browsers to compete with the company’s own browser offering, Safari. The CMA also called out Google’s Android ecosystem for excluding competitors, thought to a lesser degree.

Specially, Apple requires all browsers on its iOS system to run on a WebKit browser engine, which the report found gives Apple’s own browser, Safari, an unfair advantage compared to other WebKit-based browsers. This stipulation also limits in-app browsing.

Further, the CMA also pointed out that having Safari pre-downloaded onto Apple devices and automatically selected as the default browser, which can be changed, gives the browser an unfair advantage.

Chrome’s pre-installation on Android systems was also called out by the CMA, though the watchdog did say that both Apple and Google have taken some recommendations on to make it easier for users to switch browsers.

Since the CMA’s initial investigation into the mobile browser app in January, Apple and Google have “addressed some, but not all,” of the watchdog’s concerns.

The CMA also called out the financial arrangement between Apple and Google which ensures that Google is the default search engine used on Apple browsers and devices.

Google paid Apple $20 billion to ensure that it was the default search engine on Apple devices and browsers back in 2022, which was revealed in an antitrust case in the US.

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The CMA is currently reviewing both company’s market dominance and place to determine if they have strategic market status (SMS), which, under the CMA’s new remit, would mean that they could face higher forms of scrutiny from the watchdog.

Seeing as the company’s have well-established dominance across a number of remits – mobile browsers, devices, app stores, mobile ecosystems, search – it is likely that they will easily qualify for SMS.

Once this is decided, it is likely the CMA may impose a number of interventions the companies must follow, or face potential fines up to 10% of their annual turnover.

“Following our in-depth investigation, we have concluded 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.

“I welcome the CMA’s prompt action to open strategic market status investigations into both Apple and Google’s mobile ecosystems. The extensive analysis we’ve set out today will help that work as it progresses.”