The payments by Alphabet Google to Apple to be the default search engine on Apple’s Safari web browser create “a significant barrier to entry and expansion” for Google’s rivals in the search engine market, the UK markets regulator said in a report released on Wednesday.
The UK Competition and Markets Authority, in its final report investigating online platforms & digital advertising, said the arrangements between Apple and Google create “a significant barrier to entry and expansion” for Google’s rivals in the search engine market. Those rivals include Microsoft Corp’s Bing, Verizon Communications Inc-owned Yahoo and independent search engine DuckDuckGo, all of which also make payments to Apple in exchange for being search engine options on its devices, the report said it.
“Given the impact of preinstallations and defaults on mobile devices and Apple’s significant market share, it is our view that Apple’s existing arrangements with Google create a significant barrier to entry and expansion for rivals affecting competition between search engines on mobiles,” the regulators wrote in the report.
Apple and Google did not immediately return requests for comment. In report to, the UK regulators said enforcement authorities should be given a range of options to address the Apple-Google arrangement, including requiring “choice screens” in which users decide which search engine to set as a default during device setup or restricting Apple’s ability to monetize default positions. Apple told that the regulators that monetization restrictions would be “very costly,” according to the report.
