Since 2021, the Competition Commission of India (CCI) has been scrutinizing Apple Inc. for potentially misusing its dominant position in the app market by mandating developers to use its proprietary in-app purchase system. According to a confidential report, Apple has been engaging in abusive practices, exploiting its dominance in the app store market for its iOS operating system. The CCIs investigation unit stated that Apple holds significant influence over how digital products and services reach consumers, particularly through its iOS platform and App Store.The report emphasized that the Apple App Store is an essential trading partner for app developers, who have no choice but to comply with Apples unfair terms. The CCI report is now set to be reviewed by senior officials, with Apple and other involved parties given the opportunity to respond before a final decision is made. This decision could potentially involve monetary fines and directives to alter business practices.Comparative Cases and Global ScrutinyIn a similar case, the CCI fined Google $113 million in October 2022 and ordered it to allow the use of third-party billing systems, challenging its in-app payment mandates. Google has since contested the decision. Apples situation also echoes increased antitrust scrutiny in other regions. In June, European Union antitrust regulators suggested that Apple had breached the blocs tech rules, potentially leading to a substantial fine. Additionally, Apple faces an investigation into new fees imposed on app developers. In response to the EUs Digital Markets Act, Apple plans to permit software developers to distribute their apps outside of its App Store within the European Union.Case Filed by Non-Profit GroupThe Indian case against Apple was initiated by the non-profit group Together We Fight Society, which argued that Apples in-app fee of up to 30% hinders competition by increasing costs for app developers and customers. This case has garnered support from the Alliance of Digital India Foundation and Tinder-owner Match Group. The CCI investigation team noted in its report that Apple does not permit any third-party payment processors for in-app purchases and restricts apps from including external links that direct customers to alternative purchasing mechanisms, which violates Indian competition laws.Apples DefenseApple has denied any wrongdoing, claiming it is a minor player in India, where Googles Android system predominates. Apple stated that its market share in India is an insignificant 0-5%, compared to Googles 90-100%. The company also argued that its in-app payment system is essential for maintaining and developing the safety of its App Store. However, the CCI noted that App stores are OS-specific, and Apples App Store is the sole App Store available for reaching iOS users. The CCI concluded that the payment policy of Apple adversely affects app developers, users, and other payment processors.
