Apple has faced and continues to face antitrust scrutiny in several countries around the world. In the US, the Department of Justice has been investigating Apple for potential antitrust violations related to its App Store practices. In the EU, the European Commission has launched multiple investigations into Apple, including probes into its App Store rules, Apple Pay, and music streaming services. In the UK, the Competition and Markets Authority (CMA) is investigating Apple"s App Store, focusing on concerns about its impact on competition in cloud gaming and mobile browsers.
In India, the Competition Commission of India (CCI) has been investigating Apple"s practices of forcing App Store developers to use its own in-app purchase system. Today, Reuters reported that the CCI found that Apple had exploited its dominant position in the market. Reuters was able to access the CCI"s 142-page investigation report, which is not yet public. The report mentioned that Apple has a "significant influence" over how third-party services are delivered to consumers on the iOS platform via the App Store.
The CCI report had the following regarding Apple"s practices:
Apple App Store is an unavoidable trading partner for app developers, and as a result, app developers have no choice but to adhere to Apple"s unfair terms, including the mandatory use of Apple"s proprietary billing and payment system. From the perspective of app developers, the Apple iOS ecosystem is indispensable.
Unlike in the US and European markets, Apple"s iOS market share in the Indian market is still in the single digits. Apple is arguing that antitrust concerns are invalid due to its low single-digit market share in the Indian smartphone market. In India, Google controls about 90-95% of the smartphone market with Android OS. The CCI has already fined Google for forcing developers to use Play Store billing, and Google has challenged the fine.
The CCI"s findings could lead to significant changes in Apple"s App Store practices in India. However, with Apple disputing the allegations and Google"s own case still pending, the final outcome remains uncertain.
Source: Reuters