CCI accuses Apple of leveraging its dominant position in apps market: Report
CCI kicked off its investigation in 2021, which focused on Apple's mandate for developers to utilise its in-app purchase system.
- Jul 12, 2024,
- Updated Jul 12, 2024 8:46 PM IST
Competition watchdog Competition Commission of India (CCI) has said that tech giant Apple exploited its dominant position in the apps market for on its iOS operating system, engaging "in abusive conduct and practices". CCI kicked off its investigation in 2021, which focused on Apple's mandate for developers to utilise its in-app purchase system. This system imposes a commission of up to 30%. The investigation determined that Apple wields substantial control over the distribution of digital products and services to consumers via its iOS platform and App Store.
The focus of the inquiry revolves around allegations that Apple is enforcing the use of its exclusive in-app purchase system on developers, Reuters reported on Friday.
Apple, in response to these accusations, refuted any misconduct, claiming its insignificance in the Indian market where devices operating on Google's Android system hold a dominant presence. The investigative unit of CCI, in a 142-page confidential report reviewed by Reuters, described Apple as possessing substantial authority in regulating the accessibility of digital products and services to 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 unit said in the June 24 report.
The report is currently under the review of senior CCI officials and hasn’t been made public. Apple will have the opportunity to respond to these findings as the investigation proceeds.
The CCI investigation report comes at a time when Apple is facing increased antitrust scrutiny in other regions.
The CCI are also investigating Apple's new "Core Technology Fee," which may lead to fines of up to 10% of its global annual revenue if Apple is found guilty.
The US Department of Justice (DoJ) filed an antitrust lawsuit against Apple earlier this year, citing alleged monopolistic practices in the country's smartphone market. In a separate development, upcoming legislation in Japan might require Apple to allow third-party app stores on iOS in the country.
Competition watchdog Competition Commission of India (CCI) has said that tech giant Apple exploited its dominant position in the apps market for on its iOS operating system, engaging "in abusive conduct and practices". CCI kicked off its investigation in 2021, which focused on Apple's mandate for developers to utilise its in-app purchase system. This system imposes a commission of up to 30%. The investigation determined that Apple wields substantial control over the distribution of digital products and services to consumers via its iOS platform and App Store.
The focus of the inquiry revolves around allegations that Apple is enforcing the use of its exclusive in-app purchase system on developers, Reuters reported on Friday.
Apple, in response to these accusations, refuted any misconduct, claiming its insignificance in the Indian market where devices operating on Google's Android system hold a dominant presence. The investigative unit of CCI, in a 142-page confidential report reviewed by Reuters, described Apple as possessing substantial authority in regulating the accessibility of digital products and services to 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 unit said in the June 24 report.
The report is currently under the review of senior CCI officials and hasn’t been made public. Apple will have the opportunity to respond to these findings as the investigation proceeds.
The CCI investigation report comes at a time when Apple is facing increased antitrust scrutiny in other regions.
The CCI are also investigating Apple's new "Core Technology Fee," which may lead to fines of up to 10% of its global annual revenue if Apple is found guilty.
The US Department of Justice (DoJ) filed an antitrust lawsuit against Apple earlier this year, citing alleged monopolistic practices in the country's smartphone market. In a separate development, upcoming legislation in Japan might require Apple to allow third-party app stores on iOS in the country.