Apple and Google might face new rules as UK finds they are 'holding back innovation'

Apple's Safari and Google Chrome are the two largest browsers in the market at the moment - by quite a large margin. However, a recent investigation from the UK suggests that the large tech firms are holding back innovation and limiting growth in these markets.

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The investigation, conducted by an independent inquiry group in the UK, was officially published on March 12. Margot Daly, the Chair of the Competition and Markets Authority (CMA), concluded that competition between different mobile browsers "is not working well" and that this is "holding back innovation in the UK."

The analysis set out to identify issues in the marketplace and outline potential interventions to facilitate the healthy functioning of digital markets. One of the key focuses was to identify whether Apple or Google have what they call 'strategic market status' (SMS) - which essentially refers to monopolistic power in a digital market. When firms are assigned this designation, the UK Government's Digital Markets Unit (DMU) is granted powers to implement pro-competitive interventions. While the investigation has flagged concerns, whether Apple and Google are designated with this status is part of an ongoing investigation expected to conclude later this year.

Some potential interventions outlined in the report include measures to enhance the ability of other browsers to compete by "offering new, innovative features to consumers" and also enabling users "actively to choose their preferred browser" to drive competition.

The investigation also looked at the cloud gaming sector, for which the CMA did not find any anti-competitive concerns. It's reported that Apple made "significant changes" over the course of the investigation, which the CMA says have "positive implications for competition in this market."

Whether Apple or Google are designed strategic market status, and these interventions come to fruition - will be determined later this year.

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