Competition Commission of India accuses Apple of abusing its market dominance

After a thorough three-year investigation, Indian regulators have concluded that Apple has engaged in antitrust practices by requiring App Store developers to use its in-app payment system.

The Competition Commission of India (CCI) began this investigation in 2021 after receiving a complaint from a group called “Together We Fight Society.” While the specifics of the complaint remain confidential, the group’s founder openly criticized Apple’s 30 per cent fee and the strict rules governing the App Store, including the removal of apps.

A detailed report from the CCI, as revealed by Reuters, spans 142 pages and concludes that Apple holds considerable sway over digital products and services. The findings indicate that developers are essentially compelled to adhere to Apple’s terms, such as the mandatory use of its billing system, due to the App Store’s dominant market position.

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Apple defended its practices by asserting that the App Store’s safety and security are funded by its in-app payment system. The company also claimed that its market share in India is between 0% and 5%, suggesting that its influence is limited.

However, the CCI dismissed this argument, highlighting that the App Store is the sole platform available to iOS users and that Apple’s payment policy adversely affects app developers, users, and other payment processors.

The investigation also gathered input from competitors like Amazon, Uber, and Microsoft. While the CCI report has not yet been made public, and no official timeline for potential repercussions has been provided, Apple and other involved parties will have the chance to respond before India decides on any punitive measures.

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These measures could include fines or requirements for Apple to modify its business practices, echoing similar regulatory actions taken in Europe.

To put things into perspective, Apple’s initiative to reduce its dependency on China for manufacturing has brought significant benefits to India. By April 2024, 14 per cent of all iPhones are being produced in India. This shift underscores India’s increasing importance in Apple’s supply chain, even as the company navigates regulatory challenges in the country.