Apple is reportedly under fire in India for its App Store practices. The country’s antitrust body, the Competition Commission of India (CCI), found that the tech giant may be abusing its dominant market position.
The investigation is resolved around Apple’s requirement that app developers use its in-app purchase system, which takes up to 30% of the commission on transactions. The CCI alleges this practice stifles competition and inflates costs for both developers and consumers.
According to a confidential report obtained by Reuters, the CCI argues that Apple’s control over the iOS App Store gives them “significant influence” over how digital products and services reach users. Developers have “no choice” but to comply with Apple’s terms, which the CCI considers unfair.
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.
This investigation is very similar to the growing trend of antitrust scrutiny against Apple around the world. The European Union has reached a similar conclusion regarding their App Store practices.
Apple maintains that its market share in India is small compared to Android and that its in-app purchase system is necessary to ensure App Store security. But let me tell you, each day, I see more iPhone devices than I saw the previous day, and the number of iPhone users is increasing rapidly.
The investigation is ongoing, and Apple and other parties are allowed to respond before a final decision is made. This decision could include hefty fines and probably may force Apple to change its App Store business practices in India. All this comes after rumors of bringing a Siri that can converse in Hindi on iOS 18.