India’s competition watchdog finds Apple abused position in app market, report says

The Competition Commission of India (CCI) has found that Apple Inc. abused its dominant position in the app store market on its iOS platform, Reuters reported on Monday, citing an internal report.

The antitrust watchdog listed allegations of restrictive practices that disadvantage app developers, users, and third-party payment processors, according to the report.

The 142-page report called Apple as an “unavoidable trading partner” for iOS app developers, who are compelled to use the company’s proprietary billing system.

The report also found that developers cannot provide alternative payment options or direct users to external purchasing mechanisms. The CCI found that this practice flouted competition laws, Reuters reported.

In its response, Apple said its App Store ensures security and functionality. It also noted that it has a small market share in India, which is estimated at 3.5% of the overall 690 million smartphones as of mid-2024.

However, according to the CCI, since Apple’s App Store is exclusive to iOS, it gives the company a monopolistic edge, which affects competition negatively, the Reuters report said.

The competition body also rejected the Cupertino-based tech giant’s request to withhold revised investigation reports, despite allegations that commercial secrets had been improperly disclosed to competitors.

The CCI maintained there was the need to proceed with the investigation and requiring Apple to submit financial statements for penalty assessment.

Senior CCI officials will review the findings before issuing a final decision, Reuters reported.

The CCI previously fined Google $113 million for similar anti-competitive practices. Like Apple, Google was directed to allow third-party billing systems.

India is not the only country where Apple has been pulled up by an antitrust body.

In Europe, the maker of iPhones has faced accusations of breaching tech rules, leading to fines and mandated policy changes.

The iPhone maker has initiated plans to allow app distribution outside its App Store in the European Union under the Digital Markets Act.