India’s anti-trust regulator orders probe against Apple for commission on in-app payments
The Competition Commission of India (CCI), ordered a detailed investigation against Apple over allegations that the world’s largest technology company has abused its dominant position by owning apps that compete with third party developers, levying a commission of as much as 30% for in-app purchases and not allowing other payment mechanisms.
The order came after an NGO, Together We Fight Society, filed a plea alleging that Apple abused its dominant position in the market in violation of Section 4 of the Competition Act, 2002.
According to the CCI, app developers can only distribute their apps to iPhone and iPad users through Apple’s App Store. Further, users cannot download apps from any other app store. Since both app developers and users are dependent on the App Store, the CCI concluded that “Apple holds a monopoly position in the market for app stores for iOS in India.” Consequently, app developers have to accept Apple’s mandatory and non-negotiable rules relating to the distribution of apps through the App Store.
Therefore, the CCI decided that Apple violated Section 4 of the Competition Act, which necessitates a detailed investigation. It ordered the Director-General to conduct an investigation and produce a report within 60 days.