India’s anti-trust agency orders probe against Apple for unfair business practices

India’s anti-trust watchdog has ordered a probe against Apple App Store’s unfair business activities, saying that the iPhone maker may have violated certain antitrust laws.

The Competition Commission of India (CCI) has alleged that the tech company abused its position to prohibit third-party app stores to be listed on the App Store, levying a commission of 30% for in-app purchases and not allowing other payment mechanisms.

The CCI order states that Apple prohibits developers from informing the users that they have the ability to purchase the subscription on the web as well. 

“Thus, Apple prohibits app developers to include a button/link in their apps which take/steer the user to a third party payment processing solution other than Apple’s IAP (in-app purchase). This prima facie results in denial of market access for the potential app distributors/app store developers in violation of competition norms,” the order read.

Also read | Apple hit with EU antitrust charge over App Store practices

The Commission, in its order, has stated that it has taken a prima facie view that Apple has violated provisions of Section 4 of the Competition Act, which deals with the abuse of a dominant position by an enterprise.

It has directed the Director-General to open an investigation into the company, a report for which needs to be submitted within 60 days of the order.

Also read | French anti-trust regulators fine Apple $1.23 billion

“At this stage, it appears that the lack of competitive constraint in the distribution of mobile apps is likely to affect the terms on which Apple provides access to its App Store to the app developers, including the commission rates and terms that thwart certain app developers from using other in-app payment systems,” the CCI said in its order.

Notably, the tech company is facing similar charges in other countries, including EU and UK. 

(With inputs from agencies)