India says Apple has abused its dominant market share of iOS apps
After three years of investigations, Indian regulators have concluded that Apple has been using antitrust behaviours by forcing App Store developers to use its in-app payment system.
The Competition Commission of India (CCI) began investigating Apple in 2021, following a complaint by a group called “Together We Fight Society.” While under Indian law the group’s complaint is confidential, its founder has said publicly that Apple’s 30% fee is too high, and that App Store rules including removal of apps must be addressed.
According to Reuters, the CCI has now concluded its investigation. The result is a 142-page report, which has not been made public, and which says Apple has “significant influence” over digital products and services.
“Apple App Store is an unavoidable trading partner for app developers,” says the report as seen by Reuters, “and resultantly, 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.”
During the investigation, Apple reportedly argued that the safety and security of the App Store depended on the funds received via the in-app payment system. It also argued that its market share in India is simply “insignificant,” at between 0% and 5%.
However, the CCI did not accept this argument. “App stores are OS [operating system] specific and Apple’s App store is the sole App store available for reaching iOS users,” it said. “The payment policy of Apple adversely affects the app developers, users and other payment processors.”
The report reveals that during the course of its investigation, the CCI considered comments from rival firms 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 also no published timescale for what can happen as a result.
However, while this report represents the conclusion of India’s investigations, Apple — and any other parties included in the document — will have the chance to respond.
After that, India moves to a stage where it considers punishment. That is likely to mean fines, but potentially India could require Apple to change its business practices, as Europe has done.
Separately, India has benefited considerably from Apple’s moves to cut its dependence on China for its device manufacturing. The latest figures from April 2024 claim that 14% of all iPhones now come from India.
