Indian regulator says it abused its dominant market position

After three years of investigations, Indian regulators have concluded that Apple is engaging in antitrust practices by forcing app developers on the App Store to use its in-app payment system.

The Competition Commission of India (CCI) began investigating Apple in 2021 after a complaint by a group called “Together We Fight Society.” While the group’s complaint is confidential under Indian law, its founder has publicly said that Apple’s 30% fee is too high and that App Store policies, including app removals, need to be addressed.

According to Reuters AgencyThe CCI has now concluded its investigation, which resulted in a 142-page report, which has not been made public, that says Apple has a “significant influence” on digital products and services.

“The Apple App Store is an unavoidable retail partner for app developers,” we read in a report published by Reuters Agency“As a result, app developers have no choice but to comply with Apple’s unfair terms and conditions, including the mandatory use of Apple’s proprietary billing and payment system.”

During the investigation, Apple allegedly argued that the security of the App Store depended on funds received through the in-app payment system. It also claimed that its market share in India was simply “negligible,” at between 0% and 5%.

However, the CCI did not accept this argument. “App stores are operating system (OS) specific and Apple’s App Store is the only app store available to iOS users,” it said. “Apple’s payment policy adversely affects app developers, users and other payment processors.”

The report reveals that during its investigation, the CCI took into account comments from rival companies including Amazon, Uber and Microsoft.

What happens next?

The report has not been publicly released and there is no official statement from the CCI yet. So there is no published timescale for what might happen as a result.

However, while the report is a summary of the Indian investigation, Apple — and any other parties named in the document — will have a chance to respond.

Then India moves on to the stage where it considers punishment. That likely means fines, but potentially India could require Apple to change its business practices, as Europe has done.

Separately, India has benefited significantly from Apple’s efforts to reduce its reliance on China for device manufacturing. The latest data, from April 2024, shows that 14% of all iPhones now come from India.