India Investigating Apple For App Store Monopoly, Anti-Competitive Practices

On September 1, 2021 South Korea disrupted the monopolies set by Apple and Google for their in-app stores' payment gateways. Both the companies are facing increased pressure from antitrust watchdogs around the world, and India is catching on.

A Reuters report from September 2 claims that Apple Inc is set to face a brand new antitrust hurdle in India for forcing developers to use its in-app purchase and payment mechanism.

Apple under pressure to budge globally

Similar allegations against Apple Inc have been registered in the European Union. The 30 per cent fee on all payments on the iOS App Store triggered the antitrust lawsuits.

Reuters

The documents were filed by a non-profit organisation called ¡°Together We Fight Society" in Rajasthan, India, according to news agency Reuters and alleges that the 30 per cent fee is anti-competition in nature and raises costs for both developers and customers.

Also read: South Korea Law Bans Apple, Google's App Store Commission: Can India Learn From It?

In the filing seen by Reuters, the organisation alleges that the current 30 per cent cap prevents app developers from making it into the market, causing "consumer harm". The cases under review of the Competition Commission of India (CCI) are not made public in India.

Reuters

When will investigation against Apple begin in India?

The investigation of the case is expected to begin in the coming weeks. If found to be legit, the CCI will order further probe into Apple's alleged anti-competition practices. Given the EU's recent probe of similar nature, India could also pursue the case with similar grit.

Reuters

According to Apple and Google, their cut from in-store purchases are used to maintain security and marketing benefits provided by the store.

Also read: Tim Cook Earned $750 Million Last Week Through 5 Million Apple Shares

Currently, an investigation into similar practices by Google is ongoing in India. Apple's iOS powers 2 per cent of all 520 million smartphone devices in India according to Counterpoint Research. But in the last five years, Apple's market share in the country has doubled.

Just last week, Apple reached a settlement with developers allowing them to deal with customers directly instead of forcing companies to interact through the App Store with certain conditions revealed in the announcement.

Should Apple be forced to forego its 30 per cent cut from all purchases on the App Store? Feel free to discuss in comments. For the latest on tech giants and scientific developments, continue reading Indiatimes.com.