India's antitrust watchdog may be nearing the conclusion of a two-year investigation into Apple, which has reportedly found the tech giant guilty of abusing its dominant position in the App Store marketplace.
The Times of India, citing unnamed sources, reported that according to a supplementary probe report by the Competition Commission of India (CCI), Apple is accused of abusive practices in its dominant position in the iOS app store market, violating Sections 3(4) and 4 of the Competition Act.
The CCI reportedly found that Apple has engaged in anti-competitive agreements with app developers as developers have no alternative but to accept Apple's terms, making the App Store an "unavoidable trading partner."
Sources said the CCI investigation reveals that Apple imposes restrictive conditions through its developer program license agreement (DPLA) and App Store review guidelines.
The report also highlights discriminatory practices, such as charging a 30% commission on many apps while exempting its apps, like Apple Music and Apple Arcade, from this fee. This mandatory use of Apple's in-app purchase system is seen as harmful to developers, users, and other payment processors, stifling innovation and market expansion.
In January 2022, CCI ordered an investigation into Apple over potential antitrust violations. The probe follows allegations by the non-profit group "Together We Fight Society," which claimed Apple was misusing its dominant market position by mandating its proprietary in-app purchase system and imposing a 30% fee on paid digital content. Meanwhile, Apple said its market share in mobile devices is significantly lower than that of other major competitors, such as Android.
In addition to Apple, Google has been a target of CCI for anti-trust investigations. CCI had imposed a substantial fine on Google for anti-competitive practices involving its Android operating system. The regulator accused Google of coercing device manufacturers into pre-installing its apps and search engine.
Additionally, Google is under scrutiny for its in-app billing system. The CCI is also investigating Google's practices related to news content to determine if there are any abuses of market dominance in this area.
