Antitrust probe in India finds Apple abused position in apps market
An investigation by India’s antitrust body has found that Apple exploited its dominant position in the market for app stores on its iOS operating system, engaging “in abusive conduct and practices,” Reuters reports citing “a confidential report” to which it was given access.
The Competition Commission of India (CCI) has been investigating Apple Inc. since 2021 for possibly abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system.
Apple has denied wrongdoing saying it was a small player in India where phones that use Google’s Android system are dominant.
The CCI’s investigations unit, in its 142-page report which is not public but was seen by Reuters, said Apple wields “significant influence” over how digital products and services reach consumers, especially through its iOS platform and App Store.
“Apple App Store is an unavoidable trading partner for app developers, and resultantly, app developers have no choice but to adhere to Apple’s unfair terms, including the mandatory use of Apple’s proprietary billing and payment system,” the CCI unit said in the June 24 report.
“From the perspective of app developers, Apple iOS ecosystem is indispensable.”
Apple’s iOS powered about 3.5% of 690 million smartphones in India as of mid-2024, with the rest using Android, according to Counterpoint Research…
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MacDailyNews Take: Expect the eventual outcome to be for Apple to allow the use of third-party billing in its App Store and/or allowing third-party app stores. Regardless, Apple’s App Store will continue to dominate wherever third-party app stores are available.
Those who want safety, security, and privacy will stick to Apple’s App Store, but a single point of control is always a danger, especially when it comes to capricious censorship (see: pre-Musk Twitter, Apple’s App Store in China, etc.).
iPhone and iPad users must, like Mac users, have the ability to install third-party apps; even if they never do, for it will keep Apple honest. The ability to ban an app loses all power when it’s simply available in another App Store. – MacDailyNews, December 13, 2022
Adding the ability to access third-party app stores for iPhone and iPad also removes a selling point for Android phones and tablets, a crucial selling point for some, that is likely to result in further acceleration of Android to iPhone upgraders. So, third-party app stores for iPhone and iPad won’t hurt Apple too much. In fact, it might even benefit Apple. – MacDailyNews, December 14, 2022
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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