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UK Antitrust Body Raises Concerns Over Apple and Google’s Mobile

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Britain’s Competition and Markets Authority (CMA) has raised concerns about the state of competition in the mobile browser market, dominated by Apple and Google. The CMA’s independent inquiry group published a final report supporting its decision to open an investigation into the sector in January, stating that the market was not functioning well for consumers or businesses.

The majority of the report’s concerns were focused on Apple’s Safari browser, particularly its policies surrounding internet access on Apple devices. In response to provisional findings published in November, the CMA launched an investigation under its expanded powers to assess whether Apple and Google hold “strategic market status” (SMS) in mobile ecosystems, a broader focus than just the browser market.

The CMA suggested that if either company were designated with SMS status, it could lead to regulatory interventions, such as improving the ability of competitors to offer new features. Apple responded, stating that it prioritizes user trust and believes the remedies proposed would harm privacy and security. The company expressed concerns about the report and pledged to continue constructive dialogue with the CMA.

Google defended its position, highlighting that the Android ecosystem’s openness has expanded choice and lowered costs, which it claims democratizes access to smartphones and apps. Google also pledged to work collaboratively with the CMA to create a regulatory environment that fosters innovation.

The report revealed that Apple’s Safari and Google’s Chrome browsers dominate the mobile browser market, with Safari accounting for 88% of browser usage on Apple devices and Chrome holding 77% of the market on Android devices in 2024. Margot Daly, chair of the independent inquiry group, emphasized that the lack of competition in the browser space was stifling innovation and welcomed the CMA’s action to explore SMS investigations into the two tech giants.

The CMA expects to complete its SMS investigations later this year.

UK Drops Antitrust Probe into Microsoft and OpenAI Partnership

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The UK’s Competition and Markets Authority (CMA) has ended its investigation into Microsoft’s partnership with OpenAI, stating that the software giant does not have sufficient control over the AI company to warrant further scrutiny. The probe, which began due to concerns over antitrust issues, was focused on whether Microsoft’s involvement in OpenAI, which started with a $1 billion investment in 2019, gave it too much influence over the AI company.

Despite Microsoft acquiring material influence over OpenAI in 2019, the CMA concluded that it did not have de facto control over the company and, therefore, the partnership did not meet the criteria for a full investigation under UK merger control laws. However, the CMA made it clear that its conclusion should not be interpreted as ruling out any potential competition concerns from the ongoing partnership.

Microsoft welcomed the CMA’s decision, emphasizing that its partnership with OpenAI fosters competition, innovation, and the responsible development of artificial intelligence. The company also praised the CMA’s careful review of the commercial realities of the partnership.

The investigation into Microsoft’s ties with OpenAI is part of the CMA’s broader scrutiny of the growing relationships between major tech companies and AI startups. Other partnerships, such as those between Amazon and Anthropic, as well as Google-owner Alphabet and Anthropic, have also been under review, but none reached the threshold for deeper investigation.

The CMA recently gained additional powers to probe large tech firms deemed to have “strategic market status,” and it has already launched investigations into Apple and Google’s smartphone ecosystems and search services. However, analysts suggest that the recent appointment of Doug Gurr, a former Amazon executive, as interim chair of the CMA may signal a more lenient approach to future deal-making.

UK Competition Regulator Approves $35 Billion Synopsys-Ansys Merger

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The UK’s competition regulator has approved the $35 billion acquisition of Ansys by Synopsys after accepting specific remedies from the companies. With this decision, the Competition and Markets Authority (CMA) confirmed it would not escalate the review to a more in-depth Phase 2 investigation.

Initially, the watchdog raised concerns in December that the merger could reduce innovation and lead to higher prices. However, Synopsys and Ansys addressed these issues, paving the way for regulatory approval.

Synopsys, a leading provider of chip design software, announced the cash-and-stock deal for Ansys in January. Ansys specializes in simulation software used across various industries, from aerospace to consumer goods. The approval marks a significant milestone for the merger, which aims to expand Synopsys’ footprint beyond semiconductor design into broader engineering and simulation markets.