Don’t miss the latest developments in business and finance.

Apple faces antitrust complaint in India for misusing dominant play in apps

Firm accused of forcing developers to use its proprietary in-app purchase system

app store, apple
Photo: Pixabay.com
Neha Alawadhi New Delhi
3 min read Last Updated : Sep 02 2021 | 10:55 PM IST
Apple is facing an antitrust complaint in India for allegedly abusing its dominant position in the applications (app) market by forcing developers to use its proprietary in-app purchase system, Reuters reported on Thursday. 
 
There is an increasing voice against Big Tech firms like Google and Apple acting as "gatekeepers" to the users app developers can access due to the dominance of their respective operating systems - Android and iOS. 

The case was filed by a Rajasthan-based non-profit group called Together We Fight Society. The complaint, made to the Competition Commission of India, says Apple's fee of up to 30 per cent hurts competition by raising costs for app developers and customers, while also acting as a barrier to market entry, reported Reuters. 

"The existence of the 30 per cent commission means that some app developers will never make it to the market. This could also result in consumer harm," said the filing, which was seen by Reuters.
 
"It is true and correctly raised by Together We Fight Society that in-app payments charged by Big Tech companies act as a barrier to innovation. These payments and policies are a hindrance to many developers, due to which they never make it to the market. Recently, the South Korean government passed a law pertaining to the same for Google. We believe these positive moves will make tech giants rethink their restriction on independent app stores and in-app purchase commission," said Rakesh Deshmukh, chief executive officer and co-founder, Indus App Bazaar. 
 
There have been growing concerns over the dominance of Apple and Google in the operating system arena. Lowered developer commissions have already been a contentious issue in India, on both Android and iOS. 
 
South Korea's Parliament on Tuesday passed a Bill to challenge the dominance Google and Apple exert over payments on their app stores, becoming the first nation in the world to enact such a law, Yonhap News Agency reported.

South Korean lawmakers voted to approve the amendments to the Telecommunications Business Act, which bars app market operators from forcing certain payment systems on mobile content businesses by abusing their market positions, it added. 
 
In December last year, the European Union proposed a Digital Markets Act, which proposes fines up to 10 per cent of Big Tech firms' annual global revenue for offenses that include giving priority to their own services and products over smaller competitors. 
 
An Open App Markets Act proposed by US Senators in August also aims to "promote competition and reduce gatekeeper power in the app economy, increase choice, improve quality, and reduce costs for consumers". 



Topics :Apple big techantitrust law