Report: Apple Accused of Abusing App Store Position in India
India’s antitrust watchdog says Apple abused its dominant place in the app store market. That’s according to a report Friday (July 12) by Reuters, citing a confidential report by the Competition Commission of India (CCI) which accuses Apple of engaging “in abusive conduct and practices” in the app store market. According to the report, the […]
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India’s antitrust watchdog says Apple abused its dominant place in the app store market.
That’s according to a report Friday (July 12) by Reuters, citing a confidential report by the Competition Commission of India (CCI) which accuses Apple of engaging “in abusive conduct and practices” in the app store market.
According to the report, the CCI has been investigating Apple since 2021 to determine whether the tech giant abuses its place in the apps market by forcing developers to use its proprietary in-app purchase system.
The Reuters report noted that Apple has denied wrongdoing, saying that it plays a minor role in the app world in India, where Android devices hold sway.
PYMNTS has contacted Apple for comment but has not yet received a reply.
The CCI’s investigation — which is not public, though its report was seen by Reuters — argued that Apple holds “significant influence” over how digital products and services reach consumers, particularly through its iOS platform and App Store.
“Apple App Store is an unavoidable trading partner for app developers, 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,” the CCI said. “From the perspective of app developers, Apple iOS ecosystem is indispensable.”
The investigation comes as Apple is dealing with regulatory issues around the world.
As PYMNTS reported Thursday, the company reached an agreement with the EU to let other companies access its tap-and-go technologies, thus avoiding a fine and ending a four-year antitrust investigation.
The agreement — in place for 10 years — lets consumers in Europe use alternative digital wallets to make payments. Breaching the agreement could lead the EU to fine Apple up to 10% of its yearly global revenue.
“From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops,” said Margrethe Vestager, vice president in charge of competition policy for the EU. “So consumers will have a wider range of safe and innovative mobile wallets to choose from.”
Elsewhere in Europe, the European Commission (EC) is set to charge Apple after concluding — similar to the India investigation — that the company wasn’t following a requirement that it allow app developers to steer users to offers available outside Apple’s App Store without charging them fees.
Meanwhile, Apple is appealing a landmark antitrust fine of close to $2 billion handed down by European regulators after the EC ruled that Apple was abusing its dominance in the streaming music market. The commission found that the company had prevented app developers from telling iOS users about alternative and lower-cost music subscription services.
Apple had responded by pushing back against what it said was the EC’s “failure to uncover any credible evidence of consumer harm.”
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