Centre is accusing Apple of misusing dominant app market position
The Competition Commission of India (CCI) has accused Apple of exploiting its dominant position in the app market, according to a confidential report viewed by Reuters. The investigation, initiated in 2021, alleges that Apple forced developers to utilize its proprietary in-app purchase system, thereby abusing its market dominance. The 142-page report states that Apple wields "significant influence" over how digital products and services reach consumers via its iOS platform and App Store.
App Store: An unavoidable trading partner
The CCI report further emphasized that the "Apple App Store is an unavoidable trading partner for app developers," leaving them with no choice but to comply with Apple's terms. These terms include mandatory usage of Apple's proprietary billing and payment system. From the perspective of app developers, the report noted, the iOS ecosystem is indispensable. Despite these allegations, Apple has denied any wrongdoing and maintains it is a minor player in India's market dominated by Google's Android system.
Apple faces global antitrust scrutiny
Apple's antitrust troubles extend beyond India, with the tech giant facing increased scrutiny in other regions. In June, European Union antitrust regulators accused Apple of violating the bloc's tech rules, potentially leading to a substantial fine. In response to the new EU law known as the Digital Markets Act, Apple announced plans in January to permit software developers to distribute their apps outside of its own App Store within the European Union.
CCI report to undergo review by senior officials
The CCI report marks a crucial stage in the Indian investigation and will now be reviewed by senior officials at the watchdog. Before a final decision is reached—which could include monetary fines or directives to change business practices—Apple and other parties will be given an opportunity to respond. The case against Apple was initially filed by a non-profit group, "Together We Fight Society," later joined by the Alliance of Digital India Foundation, and Tinder-owner Match Group with similar cases.
Apple's in-app payment system under fire
The CCI investigation team reported that Apple doesn't allow any third-party payment processor to provide services for in-app purchases. The report also stated that apps are generally prohibited from including external links directing buyers to other purchasing mechanisms, a practice that violates Indian competition laws. Apple argued its market share is an "insignificant" 0-5%, while Google commands 90-100%. The tech giant defended its in-app payment system as a means to maintain the safety of its App Store.
