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News Excerpt:

An investigation by Competition Commission of India (CCI) has concluded that Apple misused its dominant position in the market for app stores on its iOS operating system, engaging in abusive conduct and practices.

More detail about news:

• The CCI has been probing Apple Inc since 2021, investigating allegations that the company abused its market dominance by compelling developers to use its proprietary in-app purchase system.
• Apple has denied any wrongdoing, asserting that it is a minor player in India, where Google's Android system prevails.

Allegation against Apple Inc:

• The case against Apple in India was initiated by a little-known non-profit group called "Together We Fight Society," which argued that Apple's in-app fee of up to 30% stifles competition by increasing costs for developers and customers.
• The CCI investigation revealed that Apple does not allow third-party payment processors to provide in-app purchase services and generally prohibits apps from including external links directing customers to alternative purchasing mechanisms, thus violating Indian competition laws.
• Apple holds significant influence over the distribution of digital products and services, particularly via its iOS platform and App Store.
• Apple App Store is an unavoidable partner for app developers, forcing them to comply with Apple's unfair terms, including the mandatory use of Apple's billing and payment system.

Global investigation against Apple

• This Indian investigation report surfaces amidst rising antitrust scrutiny of Apple in other regions.
• In June, European Union antitrust regulators found that Apple violated the bloc's tech rules, potentially leading to significant fines.
• Apple is also under investigation for new fees imposed on app developers.
• In January, in response to the EU's Digital Markets Act, Apple announced plans to allow software developers to distribute their apps outside of the Apple App Store in the EU.

Apple vs. Google in India

• As of mid-2024, Apple's iOS powered about 3.5% of the 690 million smartphones in India, with the rest using Android.
• However, Apple's smartphone base in the country has grown fivefold in the last five years.
• Apple argued that its in-app payment system is crucial for maintaining the security of its App Store.
• Google has also faced scrutiny from the CCI over its in-app payment mechanisms.
• In October 2022, the CCI fined Google $113 million and mandated that it allow third-party billing and cease forcing developers to use its in-app payment system, a decision Google has contested.