The Competition Commission of India (CCI) is set to take action against Apple for exploiting its dominant position in the market for app stores on its iOS operating system. While the anticipated penalty is not expected to significantly impact Apple due to its relatively small market share in India, the move is seen as a positive step by the industry towards regulating Big Tech companies.
According to a news report by Reuters, Apple has been found to have engaged in abusive practices in the app stores market on its iOS platform. Since 2021, Apple has allegedly forced developers to use its proprietary in-app purchase system, which the CCI’s 142-page report condemns as an abuse of its dominant market position. Apple has denied these allegations, arguing that it is a minor player in the Indian market, where Android phones dominate.
The CCI report, which is yet to become publicly available, highlighted that Apple wields significant influence over how digital products and services reach consumers via 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,” CCI said in its exclusive report.
This action follows a similar stance taken by European Union antitrust regulators, who in June accused Apple of breaching the bloc’s tech rules, potentially leading to a substantial fine. Apple also faces scrutiny over new fees imposed on app developers and has outlined plans to allow software developers to distribute their apps outside of its App Store in response to the EU’s Digital Markets Act.
As of mid-2024, Apple’s iOS powered about 3.5 percent of the 690 million smartphones in India, with the rest using Android, according to Counterpoint Research. Apple argued before the CCI that its market share in India is insignificant, ranging from 0-5 percent, while Google commands a dominant 90-100 percent share. Apple also claimed that its in-app payment system is crucial for maintaining the safety and development of its App Store.
The CCI concluded that Apple’s payment policy negatively affects app developers, users, and other payment processors. The report considered input from multiple companies, including Microsoft, Uber, and Amazon, during its investigation into Apple’s practices.
This move by the CCI is part of a broader global effort to regulate the market behavior of major technology companies, ensuring fair competition and protecting consumer interests. Several digital customers are waiting for strong action on US-based technology companies for using their dominant position to generate revenue from Indians. Will India follow the footsteps of Margrethe Vestager and her team to take tough actions against Apple?
Baburajan Kizhakedath
