In Short:
An investigation by India’s antitrust body found that Apple engaged in abusive practices in the app store market on its iOS system. Apple denies wrongdoing and states its small market share in India. The investigation involves the mandatory use of Apple’s payment system by developers. Apple’s influence over digital products and services was highlighted. The report will now be reviewed by senior officials for potential fines or business practice changes.
Apple’s Abusive Practices in Indian App Market
An investigation by India’s antitrust body has revealed that Apple has exploited its dominant position in the market for app stores on its iOS operating system, engaging in abusive conduct and practices.
CCI Findings
The Competition Commission of India (CCI) has been probing Apple Inc since 2021 for potentially misusing its dominant position in the apps market by mandating developers to use its proprietary in-app purchase system.
The CCI’s investigations unit, in its 142-page report, stated that Apple exerts significant influence over how digital products and services reach consumers, particularly through its iOS platform and App Store. The report highlighted that the Apple App Store is crucial for app developers, forcing them to comply with Apple’s unfair terms, including the mandatory use of Apple’s billing and payment system.
Apple’s Response and Further Actions
Apple has denied any wrongdoing, claiming it is a minor player in India compared to Android devices. The CCI report is now being reviewed by senior officials, and Apple, along with other parties, will have the opportunity to respond before a final decision is made. This decision could involve financial penalties and directives to alter business practices.
Apple vs. Google in India
The case against Apple was initially filed by the non-profit group “Together We Fight Society,” alleging that Apple’s in-app fees harm competition by increasing costs for developers and consumers. Subsequently, Indian startups, Alliance of Digital India Foundation, and Tinder-owner Match also filed similar complaints against Apple.
The CCI’s investigation team highlighted that Apple does not allow third-party payment processors for in-app purchases, breaching Indian competition laws. The report also noted Google’s similar issues with in-app payments.
In its defense, Apple argued for the safety of its App Store and its market share in India being negligible compared to Google. The CCI emphasized that Apple’s App Store is the only app store available for reaching iOS users, underscoring the detrimental impact of Apple’s payment policies on app developers, users, and other payment processors.
Industry Reactions and Conclusions
The CCI report incorporated feedback from various companies, including Microsoft, Uber, and Amazon. The investigation into Apple’s practices comes amid increased antitrust scrutiny globally, with Apple facing similar challenges in the European Union.
Google, too, has faced the CCI’s scrutiny for its in-app payments mechanism, with a recent fine imposed on the tech giant. The evolving landscape of app store regulations in India reflects a growing focus on fair competition and consumer protection in the digital market.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
