Apple hit with antitrust case in India over in-app payments issues- Report
- ByStartupStory | September 2, 2021
According to sources, Apple Inc has been accused of misusing its dominant position in the app market by forcing developers to use its own in-app purchase system. Facing the problem. This claim is similar to what Apple is facing in the European Union. Regulators launched an investigation last year in which Apple imposes an in-app fee of 30% on paid digital content distribution and other restrictions.
The Indian proceedings are filed by a lesser-known nonprofit that claims that Apple’s up to 30% of fees hurt competition by raising costs for app developers and customers, while also acting as a barrier to market entry. “The presence of a 30% commission means that some app developers will never hit the market … this can be harmful to consumers,” Reuters confirmed. Filing says. Unlike the proceedings in India, the proceedings and details of the proceedings reviewed by the Competition Commission of India (CCI) are not disclosed. Apple and CCI did not respond to requests for comment.
Within the next few weeks, the CCI may consider the case and order the investigation department to carry out a broader investigation, or reject it altogether if no benefit is found, according to people familiar with the matter. “Because the EU is investigating this, it is likely that an investigation will be ordered,” said a person who refused to be identified because the details of the case were not disclosed. Plaintiffs’ non-profit organization Together We Fight Society, based in Rajasthan, western India, has filed a proceeding to protect Indian consumers and start-ups.
In India, Apple’s iOS will power about 2% of its 520 million smartphones by the end of 2020, with the rest using Android, but according to Counterpoint Research, the US smartphone base has been in the past five. It has more than doubled annually. Apple’s proceedings in India are the same as the South Korean parliament passed a bill this week banning major app store operators such as Alphabet Inc’s Google and Apple from forcing software developers to use payment systems. It happens like this.
Companies like Apple and Google say their fees cover the security and marketing benefits that their app store offers, but many disagree. In recent weeks, Apple has relaxed some of the restrictions on developers around the world, including allowing developers to use communications such as email to share information about alternative payments outside of iOS apps. Also on Wednesday, some apps will be able to provide customers with in-app links to bypass Apple’s purchasing system, but U.S. companies will allow other forms of payment options within the app.
Gautam Shahi, a competitive law partner at Indian law firm Dua Associates, said the CCI is still considering past actions, even if companies change their behavior after an antitrust lawsuit is filed. “CCI looks in recent years to see if it violates the law and if it’s competing with consumers,” Shahi said. According to Reuters, CCI plans to speed up all proceedings involving major technology companies such as Amazon and Google by assigning additional executives and working on tighter internal deadlines.
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