Apple could be holding back innovation in smartphone browsers, according to a British regulatory report, which recommended that Apple's and Google's duopoly in mobile ecosystems should be investigated with its new powers.

An independent inquiry group in the British Competition and Markets Authority on Friday recommended an investigation into Apple and Google over their dominance of mobile web browsers and apps in the country.

Apple and Google aren't giving consumers a genuine choice of mobile web browsers, a British watchdog said Friday in a report that recommends they face an investigation under new U.K. digital rules taking effect next year.