CCI Seeks Apple’s Response On Probe Report In App Store Case

A few weeks after the Competition Commission of India (CCI) found Apple guilty of abusing its dominant position in the app store market, the competition watchdog has sought the tech major’s response to the latest report of its investigation unit.

The CCI has sent a “non-confidential version” of its report to Apple to get its response, PTI reported, citing sources. The final hearing in the case will begin after Apple submits its response. 

Last month, it was reported that the CCI’s investigation unit found that Apple was implementing unfair trade practices as its iOS ecosystem has become indispensable for developers.

This was a supplementary report filed by the investigation unit as the CCI was not satisfied with the initial report.

The supplementary report, submitted in June, said, “Apple App Store is an unavoidable trading partner for app developers, and resultantly, app developers have no choice but to adhere to Apple’s unfair terms, including the mandatory use of Apple’s proprietary billing and payment system.” 

At the heart of the dispute is an antitrust case filed by Jaipur-based non-profit organisation (NPO), Together We Fight Society, in 2021. The NPO alleged that high in-app fees and other restrictions by Apple raise costs for app developers and customers alike, hurting competition and acting as a barrier to enter the market.

Following this, the CCI ordered a probe against Apple after finding the company prima facie guilty of abusing its position.

Later, the Alliance of Digital India Foundation (ADIF) and Tinder owner Match Group also filed similar antitrust lawsuits against the tech giant. 

However, Apple has maintained that the commission charged by it does not impact the competitiveness of developers.   

Big tech giants have been under the scrutiny of the CCI for various alleged violations. 

In 2022, the antitrust watchdog imposed a penalty of INR 936.44 Cr on Google for abusing its dominant position in the app store market. 

Google continues to challenge the CCI’s findings as it is currently contesting the verdict at the National Company Law Appellate Tribunal (NCLAT). Earlier this year, it said that the penalty levied by the CCI on the company was “amorphous and overbearing”.