Business model

CCI commissions investigation into Apple’s App Store business model

The Competition Commission of India (CCI) on Friday ordered an investigation into Apple’s business practices for alleged violation of several provisions of Section 26(1) of the Competition Act 2002. The Commission asked the Director General (DG) to investigate and submit a report within 60 days of receipt of the order.

Complaint by an NGO

The order came in response to a complaint filed by the Rajasthan-based NGO Together We Fight Society in August, alleging the tech giant abused its dominant position by charging a 30% commission on in-app purchases and sale of digital goods and services. through its App Store ecosystem. He also accused the company of employing anti-competitive practices.

Apple declined to comment when
Activity area to reach.

The TCC order stated: “Apple requested the advisability of a preliminary conference hearing before the Commission before issuing an order. However, the Commission, on the basis of the information available in the file (including the observations made by Apple), is
At first glance convinced that it is justified to lead an investigation by the GD. Apple would be free to make further submissions to the DG during the investigation, during which these would be considered appropriately,” he added.

The DG will be able to access both Apple’s confidential and non-confidential submissions made earlier in response to the NGO’s allegations.

Restrict choice

ICC is of the view that the mandatory use of Apple’s DPI for paid apps and in-app purchases limits the choice available to app developers to select a payment processing system, given the high fees charged by Apple. He also noted that Apple’s proprietary apps compete with third-party apps on the iOS platform and that the allegedly high fees would increase costs for competitors in downstream markets of music and video streaming, e-books , etc

The investigation would also check whether Apple has access to data collected from users of its downstream competitors, which would allow it to improve its own services, while competitors may not have access to this information.