Apple is facing yet another anti-trust scrutiny in yet another jurisdiction. This time, its the Competition Commission of India (CCI), which has intensified its scrutiny of Apple, examining allegations that the tech giant’s App Store policies violate competition norms. The Indian regulator has sought Apple’s response on its report.
The origins of this investigation trace back to 2021 when a Jaipur-based non-profit organization – Together We Fight Society – alleged that Apple’s app store policies were detrimental to competition. The non-profit organization highlighted high in-app fees and restrictive conditions imposed by Apple, arguing that these practices increased costs for developers and consumers while acting as barriers to market entry. The CCI, after finding Apple’s practices prima facie problematic, ordered a comprehensive probe into the tech giant’s conduct.
In its supplementary report, the CCI’s investigation unit found that Apple’s App Store had become an indispensable platform for app developers. The report stated that app developers had no alternative but to comply with Apple’s terms, which included the mandatory use of its proprietary billing and payment system. This practice was deemed anti-competitive as it forced developers to adhere to onerous conditions and pay substantial commissions, which could go as high as 30%. Notably, Apple does not charge this commission to its proprietary apps like Apple Music and Apple Arcade Games, a disparity flagged as discriminatory by the investigation.
Following the report, the CCI has sent a non-confidential version to Apple, seeking the company’s response. This step is part of the procedural norms before final hearings commence. Apple has consistently denied any wrongdoing on its part, asserting that the commissions it charges are justified and do not hamper competition. The tech giant argues that these fees are necessary to maintain and develop the App Store as a secure and trusted environment for both users and developers.
The outcome of the CCI’s investigation into Apple could have significant ramifications for the app development market in India. If the CCI rules against Apple, the company might be forced to revise its app store policies, potentially allowing third-party billing systems and reducing the commission fees. This could lower costs for developers and increase market competition.
Apple is not alone in facing antitrust scrutiny in India. The CCI has also investigated Google for similar abuses in its app store market. In 2022, the watchdog imposed a penalty of INR 936.44 crore on Google for abusing its dominant position. Google is currently contesting this decision at the National Company Law Appellate Tribunal (NCLAT), arguing that the penalties are excessive. Other organizations, such as the Alliance of Digital India Foundation (ADIF) and Match Group, the owner of Tinder, have also lodged complaints against Apple, echoing the concerns raised by Together We Fight Society.
