Wachiwit
A probe by the Competition Commission of India found that Apple (NASDAQ:AAPL) exploited its dominant position in the app stores market on iOS, and engaging “in abusive conduct and practices,” Reuters reported citing a confidential report.
The Indian antitrust regulator has been probing Apple since 2021 for potentially abusing its dominant position in the apps market by forcing developers to use the company’s in-app purchase system, the report added.
The U.S. tech giant denied wrongdoing, noting that it was a small player in India, where phones using Alphabet’s (GOOG) (GOOGL) Google Android system are dominant.
The investigation report noted that Apple has “significant influence” over how digital products and services reach consumers, mainly via its iOS platform and App Store, according to the news agency.
“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 investigations’ unit of CCI said in the June 24 report.
Apple is facing similar allegations in Europe as well.
Last month, the European Commission said that it informed Apple of its preliminary view that Apple’s App Store rules breached the region’s Digital Markets Act as they prevent app developers from steering consumers to alternative channels for offers and content.
In June, The U.K.’s antitrust watchdog extended the time period needed to investigate Apple’s conduct in relation to the distribution of apps on iOS and iPadOS devices in the country, mainly the terms governing app developers’ access to Apple’s App Store.
Separately, earlier this week, the Commission accepted commitments by Apple thereby addressing the agency’s concerns related to Apple’s refusal to grant rivals access to a technology called Near-Field-Communication, or NFC, for contactless payments (‘tap and go’) with iPhones in stores.
The CCI report is the most vital stage of the Indian probe and it will now be evaluated by the agency’s senior officials, the report noted.
The CCI report showed it considered remarks from several companies including Microsoft (MSFT), Uber Technologies (UBER) and Amazon (AMZN) during the Apple probe, the report added.
Apple and other parties will be allowed to respond before a final decision is made which can include monetary fines and orders to alter business practices.
The CCI probe team noted in its report that no third-party payment processor was being allowed by Apple to provide the services for in-app buys.
The CCI said that “App stores are OS (operating system) specific and Apple’s App store is the sole App store available for reaching iOS users.
“The payment policy of Apple adversely affects the app developers, users and other payment processors,” the agency noted as per the report.