Recently, India’s antitrust body conducted an investigation into Apple’s practices regarding its app stores on the iOS operating system. The investigation revealed that Apple was engaging in abusive conduct and practices, exploiting its dominant position in the market. The Competition Commission of India (CCI) has been looking into Apple’s activities since 2021, particularly focusing on the tech giant’s alleged abuse of power in the apps market by mandating developers to use its proprietary in-app purchase system. According to a confidential 142-page report by the CCI, Apple holds significant influence over how digital products and services are made available to consumers, particularly through its iOS platform and App Store.
The report highlighted that the Apple App Store is a crucial trading partner for app developers, making it essential for them to comply with Apple’s unfair terms, including the mandatory use of its billing and payment system. From the perspective of app developers, the iOS ecosystem is deemed indispensable. The investigation report suggested that Apple’s practices have far-reaching effects on app developers, users, and other payment processors, ultimately impacting competition and raising costs within the market. Apple’s refusal to allow third-party payment processors and external links for other purchasing mechanisms was flagged as a violation of Indian competition laws.
Despite the allegations made in the CCI report, Apple maintains its innocence, labeling itself as a minor player in the Indian market dominated by Android devices. The tech giant argues that its in-app payment system is crucial for ensuring the safety and development of its App Store. Apple has also emphasized that its market share in India is minimal, compared to Google, which commands a significantly larger share. The company’s submissions to the CCI suggested that Apple’s App Store is the sole platform available for reaching iOS users, claiming that its payment policy is necessary for maintaining security within the ecosystem.
Global Antitrust Concerns
Apple’s antitrust issues in India are not isolated, as the company faces similar scrutiny in other regions. In June, European Union antitrust regulators found Apple in breach of the bloc’s tech rules, potentially resulting in substantial fines. The EU investigation stemmed from new fees imposed on app developers, prompting Apple to outline plans for software developers to distribute apps in the European Union independently of the App Store. Additionally, Google has also faced antitrust challenges regarding its in-app payments mechanism, with the CCI imposing a hefty fine on the tech giant in October 2022.
The findings of the Indian investigation into Apple’s practices mark a critical stage in the proceedings, with the report set to be reviewed by the CCI’s senior officials. Apple and other involved parties will have the opportunity to respond before a final decision is made, which could entail monetary fines and directives for changing business practices. The case was initially brought forward by a non-profit group, followed by Indian startups and other organizations, all citing concerns about Apple’s in-app fees and market dominance. The outcome of this investigation could have significant repercussions for Apple’s operations in India and potentially set a precedent for future antitrust actions in the tech industry.