CCI Seeks Apple's Reply on Alleged App Store Competition Norm Violations

The Competition Commission of India (CCI) has requested a response from Apple regarding an investigation report accusing the tech giant of violating competition norms through its App Store practices. The probe follows a complaint from a Jaipur-based NGO and has highlighted Apple's alleged abuse of market dominance within the iOS app store market in India.

The Fair Trade watchdog, Competition Commission of India (CCI), has requested a response from Apple following an investigation report that alleges the technology giant violated competition norms via its App Store, according to sources.

Sources indicate that a supplementary investigation report from the regulator's Director General (DG) has concluded that Apple abused its market dominance within the relevant market, thus breaching various provisions of Section 4 of the competition law.

In December 2021, the CCI ordered a detailed probe into Apple after initially finding that the company abused its market dominance. Dissatisfied with the initial findings submitted by the DG, the regulator sought an additional investigation on specific points, which was submitted to the CCI in June, sources added.

The watchdog has since sent a non-confidential version of this report to Apple for its response. Final hearings will commence after receiving responses from both the company and the complainant, sources said. An email to Apple requesting comment on the issue went unanswered.

A Jaipur-based NGO, Together We Fight Society, initially lodged the complaint with the CCI. Sources also mention that a confidentiality ring will be set up before hearings start, ensuring that designated persons peruse the confidential information subject to certain undertakings.

The final hearings, which could span several months, will culminate in the CCI issuing a final order. When ordering the probe in December 2021, the regulator noted that Apple seemingly violated competition law by abusing its market position within the 'market for app stores for iOS in India.'

Observation from December 2021 highlighted that Apple's App Store is the sole channel through which app developers can reach iOS consumers, being pre-installed on every iPhone and iPad. The regulator also pointed out that Apple's guidelines prohibit third-party app stores from being listed, foreclosing the market for potential distributors. This, prima facie, results in a denial of market access, limiting the potential for technical and scientific development in the relevant sector.

(With inputs from agencies.)