India says Apple has abused its dominant market share of iOS apps
Indian regulators have wrapped up a three-year probe into allegations that Apple has been employing anti-competitive practices by compelling developers to utilize its proprietary in-app payment system.
The Competition Commission of India (CCI) initiated an investigation into Apple following a complaint from “Collectively We Combat Society”, although Indian law requires the grievance to remain confidential. The group’s founder publicly claimed that Apple’s 30% commission rate is excessively high, and urged the addressing of App Store rules including app removals?
According to the relevant guidelines, the Consumer Complaints Institute (CCI) conducted its investigation. The confidential 142-page report reveals that Apple exercises a “vital influence” over digital services and products.
The report notes that “Apple App Store is an indispensable partner for app developers,” indicating that app creators are essentially forced to align themselves with Apple’s terms, including the requirement to use Apple’s proprietary payment processing system.
During the investigation, Apple claimed that the security and integrity of the App Store depended on the revenue generated through its in-app payment mechanism. The company further contended that its market presence in India was minuscule, accounting for a mere 0% to 5% share.
Notwithstanding the CCI’s initial skepticism, it refused to accept this reasoning. “While app stores are inherently tied to specific operating systems, the statement highlighted that Apple’s App Store is uniquely accessible for reaching customers.” “The fees imposed by Apple have a detrimental effect on app developers, consumers, and other payment processors.”
The report discloses findings from an investigation by the CCI, which considered input from competing firms, including Amazon, Uber, and Microsoft.
What occurs subsequent
Although the report remains unpublished, there is no official confirmation from the CCI regarding its contents or release date. There is no printed timeline provided to indicate what might happen subsequently.
Notwithstanding the completion of India’s inquiry, Apple and other parties mentioned in the document may still respond with opposing views or additional information.
When India reaches a level where it perceives retribution is necessary. That’s prone to imply fines, but it’s likely that India may force Apple to modify its business practices, as the European Union has done.
India has reaped significant benefits from Apple’s supply chain disruptions, which have compelled the company to diversify its manufacturing base and reduce its reliance on China. According to statistics released in April 2024, it was revealed that a significant 14% of the world’s top talent pool is now comprised of individuals hailing from India.
