LONDON (Reuters) - Britain's antitrust regulator said its inquiry group had found the mobile browser market, dominated by Apple ( AAPL ) and Google, was not working well for consumers and businesses, supporting its decision to launch an investigation into the sector in January.

A final report by the Competition and Markets Authority (CMA) independent inquiry group said most of its concerns related to Apple's ( AAPL ) policies about accessing the internet on its devices using its Safari browser.

Following provisional findings published in November, the CMA opened an investigation under its new powers in January.

It will decide if either or both companies have "strategic market status" in mobile ecosystems, a wider remit than the browser market looked at by the inquiry group.

The group said if the companies were designated with SMS status, the CMA should consider interventions such as enhancing the ability of rivals to compete by offering new features.

Apple ( AAPL ) said it believed in "thriving and dynamic markets where innovation can flourish", and its focus was always the trust of its users.

"We have concerns with this report and believe the remedies it discusses would undermine privacy, security, and the overall user experience," a spokesperson said.

"We will continue to engage constructively with the CMA to best address their concerns."

Apple's ( AAPL ) Safari and Google's Chrome browsers dominate the market, it said, with Safari accounting for 88% of browsers on Apple ( AAPL ) devices and Chrome accounting for 77% on devices running Google's Android operating system in 2024.

Margot Daly, chair of the independent inquiry group, said competition between different mobile browsers was not working well and it was holding back innovation.

"I welcome the CMA's prompt action to open strategic market status investigations into both Apple ( AAPL ) and Google's mobile ecosystems," she said.

"The extensive analysis we've set out today will help that work as it progresses."

The CMA said its SMS investigations were expected to conclude later this year.

(This story has been refiled to fix the spelling of 'browsers' in the headline)