Apple, Google, And Microsoft Suffer As Small Browsers Gain Market Share After This New Law Made It Easier To Switch To Rivals

The European Union’s (EU) new regulations are proving to be a game-changer for independent browser companies, as they witness a surge in user numbers, challenging the dominance of tech giants Apple Inc. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

What Happened: The EU’s Digital Markets Act, which came into effect on March 7, requires major tech companies to offer mobile users the option to choose from a list of available web browsers.

This legislation has resulted in a significant increase in user numbers for independent browser companies in the EU, Reuters reported.

According to data shared by six companies, the EU’s new laws have led to a spike in users for independent browser companies, such as Cyprus-based Aloha Browser, Norway’s Vivaldi, Germany’s Ecosia, and U.S.-based Brave.

These companies have seen a notable increase in user numbers, with some experiencing growth rates of up to 250%.

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Although the choice screen rollout is still ongoing, U.S.-based DuckDuckGo and Norway-based Opera have also reported a rise in user numbers.

"Why did Apple and Google make it hard to switch default browsers for so many years? Because it’s a powerful way to block competitors," said Brave Software in a post on X, formerly Twitter.

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The San Francisco-based company reported a major rise in the number of installations on iPhones after Apple rolled out the browser choice screen for users in the EU.

"Maybe that’s why Google still hasn’t implemented a browser choice screen on Android."

Why It Matters: The EU’s Digital Markets Act has been a significant disruptor in the tech industry.

The legislation, which aims to eliminate unfair competition, has forced tech giants like Google, Microsoft, and Apple to make it easier for users to switch to rival browsers and install apps and games from third-party providers.

Earlier this year, Apple’s iOS 17.4 update in compliance with the EU’s Digital Markets Act, resulted in a significant surge in users for Mozilla Firefox and Brave browsers in the EU.

Meanwhile, Microsoft and Google have also complied with the EU’s new tech regulations, aiming to make it easier for users to switch between rival services, including social media platforms and internet browsers.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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