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After Rs 1,338-cr penalty on Google, CCI speeds up Apple antitrust case

Apple's restrictions prima facie result in denial of market access for potential app developers and distributors

CCI
The CCI comments on Apple in the order follows Google argument saying that Apple has a much larger market share globally according to revenue based market share than Google’s Play
Ruchika ChitravanshiShrimi Choudhary New Delhi
3 min read Last Updated : Oct 21 2022 | 11:14 PM IST
On the heels of its order against Google, the Competition Commission of India (CCI) is expediting its probe in the Apple Inc matter and is expected to finalise its investigation by the end of January.

The competition watchdog, which had launched the probe against the iPhone maker in December 2021 over alleged violations of antitrust laws, will soon be quizzing app developers and also seek a response from the company, according to an official in know. 

Apple’s restrictions prima facie result in denial of market access for potential app developers and distributors.

“The regulator was waiting for the Google payment policy matter to conclude first and then deal with the case against Apple because it feels both relate to the same conduct and the same developer community opposing the practices of the two ecosystems,” an official privy to the plan told Business Standard.

However, the explanation and rationale of both the firms could be different and so could the CCI approach, the official said.

The finality in the Google payment policy matter will make a lot of things clearer about the policies of these platforms, he added.

Apple refused to answer Business Standard’s queries.

While slapping a penalty Rs 1,337.76 crore on Google over allegedly abusing its dominant position, the CCI in its Thursday order made several observations about the Apple iOS system, which is facing similar allegations. 

The CCI said Google’s Play Store and Apple’s App Store could not be considered “substitutes”.

It further said Apple’s App Store was the only channel for app developers to distribute their apps to iOS consumers, which is pre-installed on every iPhone and iPad.

“Third-party app stores are not allowed to be listed on Apple’s App Store as the developer guidelines as well as agreements prohibit app developers from offering such services,” the CCI had said in its Thursday order.

The CCI comments on Apple in the order follow the Google argument, saying that Apple has a much larger market share globally in terms of revenue than Google Play. 

The CCI order also cited Google’s complainant “Together We Fight Society”, which had said Apple’s imposition of a 30 per cent in-app fee for distributing paid digital content and other restrictions hurt competition by raising costs for app developers and customers, while also acting as a barrier to market entry.

The CCI emphasised that app developers, in order to expand their reach to a maximum set of consumers, would not like to confine their offers exclusively to one of the ecosystems (Android or iOS) because it would imply losing a sizable portion of the potential consumers’ revenue.

The CCI further said there might be some degree of competition between the two mobile ecosystems, Android and Apple. However, that too is also limited at the time of deciding as to which device to buy.

Topics :Competition Commission of IndiaGoogle IndiaApple Indiabig techCCI