India’s antitrust body finds Apple abused App Store dominance

India’s antitrust body, the Competition Commission of India (CCI), has concluded its investigation into Apple’s practices within the Indian app market, finding the tech giant engaged in abusive conduct. According to a confidential report viewed by Reuters, the CCI alleges Apple exploited its dominant position in the iOS app ecosystem by mandating developers to use its proprietary in-app purchase system. This requirement, the CCI asserts, limits competition and imposes unfair terms on developers who rely on Apple’s platform to reach consumers.

The 142-page report highlights Apple’s significant influence over digital products and services distribution through its App Store on iOS devices. It describes the App Store as a crucial channel for app developers, who must comply with Apple’s terms, including its billing and payment system. Both Apple and the CCI declined to comment on the report’s findings.

The CCI report marks a pivotal phase in India’s investigation, pending review by senior officials. It could result in fines and directives for Apple to revise its business practices. The case originated from complaints by a non-profit group and Indian startups, alleging Apple’s practices stifle competition and inflate costs for developers and consumers.

Why does this matter?

The investigation mirrors the heightened scrutiny Apple faces globally. In June, the EU regulators accused Apple of breaching antitrust laws, potentially leading to substantial fines. Apple is also under investigation for new fees imposed on developers, responding with plans to allow alternative app distribution in the EU under the Digital Markets Act.

The report underscores the regulatory pressure tech giants face worldwide, with similar antitrust actions targeting Google in India over its in-app payment policies. As the CCI deliberates its next steps, Apple’s market practices remain a focal point amid broader concerns over fair competition in the digital economy.