New Delhi – A confidential report seen by Reuters reveals that India’s antitrust body, the Competition Commission of India (CCI), has found Apple guilty of exploiting its dominant position in the app store market on its iOS operating system. The report accuses Apple of engaging in abusive conduct by forcing app developers to use its proprietary in-app purchase system.
CCI’s Findings
Since 2021, the CCI has been investigating Apple Inc.’s practices, focusing on whether the company unfairly uses its dominance to control how apps are distributed and payments are processed on its platform.
Apple has defended itself, arguing that it holds a minor position in India’s smartphone market, which is largely dominated by devices using Google’s Android system.
According to the CCI’s 142-page report, which is not publicly available, Apple exerts significant influence over app developers who rely on its App Store for reaching consumers. The report criticizes Apple’s mandatory use of its billing and payment system, stating that developers have no alternative but to comply with Apple’s terms.
Global Antitrust Challenges
The investigation in India adds to Apple’s global antitrust challenges. In June, European Union regulators accused Apple of breaching antitrust rules, potentially leading to substantial fines. Apple is also under scrutiny for new fees imposed on developers and faces investigations in various jurisdictions.
The CCI report marks a crucial stage in the Indian investigation, with further reviews and responses expected from Apple and other stakeholders before a final decision is made. Possible outcomes include fines and directives to change business practices.
In India, the case was initially brought by a non-profit group and later supported by Indian startups and other organizations, alleging that Apple’s fees on in-app purchases stifle competition and raise costs.
Next Steps
Apple’s argument that its policies ensure the safety and integrity of its App Store was countered by the CCI’s findings, which emphasize the restrictive nature of Apple’s practices on developers and users alike.
The CCI’s scrutiny of Apple parallels similar actions against Google concerning its in-app payment policies, highlighting ongoing regulatory challenges in the digital marketplace.
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