Business model

CCI Orders Examines Apple’s App Store Business Model

The Indian Competition Commission (ITC) 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 (CEO) to investigate and submit a report within 60 days of receiving the order.

Complaint from an NGO

The order came in response to a complaint filed by Rajasthan-based NGO Together We Fight Society in August alleging that the tech giant abused its dominant position by charging a 30% commission on both buying and selling. integrated digital goods and services. via its App Store ecosystem. He also accused the company of having resorted to anti-competitive practices.

Apple declined to comment when Activity area to reach.

The TCC order stated: “Apple requested the opportunity of a preliminary conference hearing before the Board before making an order. However, the Commission, on the basis of the information available on the file (including the observations made by Apple), is At first glance convinced that it is justified to conduct an investigation of the DG. Apple would be free to submit other observations to the CEO during the investigation, the same being considered as appropriate, ”he added.

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

Restriction of choice

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

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