The Competition Commission of India (CCI) has started an investigation into Apple's practices on its App Store. The CCI noted that third-party app stores are not allowed to list on the store due to developer guidelines and agreements. “These restrictions imposed by Apple forecloses the market for app stores for iOS for potential app distributors,” the order reads. The move follows a complaint from NGO Together We Fight Society, which says Apple contravenes the country’s Competition Act.
The NGO believes Apple uses a “barrage” of “unreasonable and unlawful” anti-competitive restraints and practices, and that it abuses its dominant position on the market for the distributing apps. This includes apps for smart mobile phones and tablets and the processing of consumer payments for digital content within iOS apps. Apple also requires app developers who wish to sell digital in-app content, to use a single payment processing option offered by Apple, which carries a 30 percent commission fee. By contrast, app developers can make their products available to Mac or MacBook users in an open market through various stores or direct downloads, with fees averaging 2-5 percent.
The CCI document specified that Apple is stated to have a monopoly in the iOS app distribution market. The company can prevent iOS from downloading app stores or apps directly from websites, that it pre-installs its own App Store on every iOS device it sells and that it also disables iOS users’ ability to remove the store.
The matter has come to light in many areas of the world, with litigation still pending in the European Union.
