CCI Charges Apple With Market Abuse
According to a CCI report, Apple has been engaging in unfair practices by forcing app developers to use its proprietary in-app purchase system
Competition Commission of India (CCI) has found Apple guilty of exploiting its dominant position in the app store market for its iOS operating system.
According to a confidential report viewed by Reuters, Apple has been engaging in unfair practices by forcing app developers to use its proprietary in-app purchase system. This investigation, initiated in 2021, highlights that Apple’s App Store is an unavoidable partner for developers, compelling them to comply with terms deemed unfair by the CCI.
Despite Apple’s defense that its market share in India is insignificant—claiming only 0-5 per cent compared to Google's 90-100 per cent—the CCI pointed out that app stores are operating system-specific. For iOS users, Apple’s App Store is the sole avenue for app distribution, giving Apple significant leverage over developers.
The CCI report mentioned that Apple’s payment policies negatively impact app developers, users, and other payment processors, labeling the iOS ecosystem as indispensable from the perspective of app developers.
The CCI’s findings come at a crucial stage in the investigation, which will now be reviewed by senior officials of the watchdog. Both Apple and other involved parties will have the opportunity to respond before a final decision is reached, potentially leading to monetary fines and directives for Apple to alter its business practices. This scrutiny in India adds to the growing global pressure Apple faces, with similar antitrust investigations in the European Union.
The CCI case in India began with a complaint from the non-profit group "Together We Fight Society," later supported by the Alliance of Digital India Foundation and Tinder-owner Match. They argued that Apple’s in-app fee, which can be as high as 30 per cent, raises costs for developers and customers, stifling competition. Additionally, the investigation noted that Apple does not permit third-party payment processors for in-app purchases or external links to alternative purchasing mechanisms, further violating Indian competition laws.
(Inputs from Reuters)
