Apple to face antitrust charges in India: Here's why
What's the story
The Competition Commission of India (CCI) has reportedly found evidence of anti-competitive conduct by Apple in relation to its App Store operations in the country.
The conclusion was reached after investigating the tech giant's app store processes, sources familiar with the matter told Mint.
The CCI is yet to announce its final decision on the matter but has shared a confidential version of its investigation report with Apple and Apple Distribution International Ltd.
Law breach
CCI's investigation confirms violation of competition law
The CCI's investigation report has confirmed a breach of India's competition law provisions prohibiting abuse of dominance.
The probe into Apple's App Store practices was launched in December 2021, after concerns over the mandatory use of Apple's in-app payment solution for paid apps and in-app purchases.
This requirement was viewed as restricting developers' freedom to choose their preferred payment processing system, and thus anti-competitive.
Payment dispute
Allegations against Apple's in-app payment solution
The allegations against Apple revolved around its in-app payment solution, In-App Purchase (IAP), for distributing paid digital content.
The tech giant was also slammed for the commission it charges, which can go as high as 30% for app purchases and in-app purchases.
These practices were considered by the CCI as 'unfair' and violating India's competition law.
EU fines
Apple's previous regulatory issues in the European Union
Apple has already been subjected to a similar regulatory action in the European Union.
Back in March 2024, the European Commission had fined Apple over €1.8 billion for "abusing its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users through its App Store."
The Commission had found that Apple placed restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app.
Defense preparation
Apple's defense and CCI's confidentiality principle
In response to CCI's 2021 order to initiate the probe, Apple had said its App Store review guidelines were neither unfair nor arbitrary.
The tech giant claimed these measures were put in place to ensure a safe and secure platform for consumers to discover and download apps as well as purchase digital content.
Sharing the confidential version of CCI investigation report with Apple is in line with principles of confidentiality and fairness under Indian law.