The center accuses Apple of abusing its dominant position in the application market

What is the story

Apple has been accused of abusing its dominant position in the app market, according to a confidential report made available by the Competition Commission of India (CCI). Reuters Agency.

The investigation, launched in 2021, is based on allegations that Apple forced developers to use its proprietary in-app purchase system, abusing its dominant market position.

The 142-page report found that Apple exerts a “significant influence” on how digital products and services reach consumers through its iOS platform and App Store.

App Store: The Inevitable Retail Partner

The CCI report further highlighted that “Apple App Store is an unavoidable commercial partner for app developers,” which leaves them with no other choice but to adapt to Apple’s terms.

These terms include mandatory use of Apple’s proprietary billing and payment system.

As the report notes, from the perspective of app developers, the iOS ecosystem is irreplaceable.

Despite the accusations, Apple denies any wrongdoing and maintains that it is a minor player in the Indian market, which is dominated by Google’s Android operating system.

Apple faces global antitrust scrutiny

Apple’s antitrust woes extend beyond India as the tech giant faces increased scrutiny in other regions.

In June, European Union antitrust authorities accused Apple of violating EU technology rules, a move that could result in the company facing a significant fine.

In response to a new EU law known as the Digital Markets Act, Apple in January announced plans to allow software developers to distribute their apps outside its own App Store within the European Union.

The CCI report will be reviewed by senior officials

The CCI report is a key step in the Indian investigation and will now be reviewed by senior officials of the watchdog.

Before a final decision is made — which could include monetary penalties or guidance to change business practices — Apple and others will have an opportunity to respond.

The case against Apple was originally filed by the non-profit Together We Fight Society, which was later joined by the Alliance of Digital India Foundation and Match Group, owner of Tinder, who filed similar lawsuits.

Apple’s In-App Payment System Under Fire

The CCI investigation team reported that Apple does not allow any third-party payment processors to provide in-app purchase services.

The report also said apps generally cannot contain external links that direct users to other purchasing mechanisms, which is a violation of Indian competition law.

Apple says its market share is a “negligible” 0-5%, while Google has 90-100%.

The tech giant has defended its in-app payments system, saying it is a way to keep its app store secure.