India Probes Apple: Antitrust Report Unveils ‘Abusive Practices’

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Apple abused its dominating position in the iOS app store industry, according to an inquiry by India’s antitrust body, the Competition Commission of India (CCI), which found “abusive behavior and practices.” Reuters looked at a private report that resulted from a 2021 investigation. The probe was launched to investigate whether Apple was pressuring app developers to utilize its exclusive in-app purchase mechanism, thereby stifling competition.

Given the widespread use of Google’s Android operating system in the Indian smartphone industry, Apple has repeatedly denied any misconduct, claiming to own a relatively modest percentage. Apple’s filings indicate that, in India, its market share falls between 0-5%, whereas Google’s fluctuates between 90-100%. Apple argues that maintaining the security and functionality of the App Store is dependent on its in-app payment system.

The CCI’s 142-page study claims that Apple “significantly influences” how consumers receive digital goods and services through its iOS platform and App Store. The paper describes the Apple Software Store as a necessary trading partner for software developers, compelling them to adhere to Apple’s strict and allegedly unfair policies, including the mandatory use of Apple’s billing system. According to the report, this requirement forces app developers to comply, resulting in a significant impact on their profitability and business operations.

This study conducted in India reflects growing worldwide criticism of Apple’s operations. Antitrust authorities in the European Union have also accused Apple of breaking bloc technology policies, possibly resulting in large fines. Apple is also under investigation for charging extra fees to EU app developers. In response to the new Digital Markets Act, Apple has revealed its intention to allow developers to distribute their products outside the App Store within the EU.

Now pending assessment by top officials, the CCI’s report marks a pivotal stage in the Indian inquiry. Before any final decisions, possibly including financial fines and directives to change corporate operations, Apple and other interested parties will have the chance to react.

The complaint of the non-profit organization “Together We Fight Society,” claiming Apple’s in-app fee of up to 30% was anti-competitive, launched the Indian lawsuit. Later, Indian entrepreneurs and businesses, including Match Group, Tinder owners, and the Alliance of Digital India Foundation, joined the case.

According to the CCI’s probe, Apple does not allow third-party payment processors for in-app sales and forbids apps from adding outside connections to other purchasing options, moves judged to contravene Indian competition laws. Apple’s impact has expanded dramatically over the past five years, even with its meager market share of just 3.5% of India’s 690 million cellphones.

In line with this, the CCI has criticized Google’s in-app payment practices. Currently under appeal, the CCI fined Google $113 million in October 2022 and forced the inclusion of third-party billing choices.

Governments from all over the world are increasing pressure on Apple to change its business policies and create a more competitive environment for customers and app developers as it prepares to respond to the results of the CCI.

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