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CCI orders probe into Apple’s alleged anti-competitive business practices

The Competition Commission of India (CCI) on Friday ordered an investigation into Apple’s business practices in the country, saying that it was of the initial view that the iPhone-maker had violated certain anti-trust laws. 


The order from the CCI comes after a non-profit group had alleged this year that Apple was abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system. 


The complainant, Together We Fight Society, had argued that Apple’s imposition of a 30 per cent in-app fee for distribution of paid digital content and other restrictions hurts competition by raising costs for app developers and customers, while also acting as a barrier to market entry. 


The CCI said that Apple’s restrictions prima facie resulted in denial of market access for potential app developers and distributors. 


“The Commission at this stage is convinced that a prima facie case is made out against Apple which merits investigation,” it said. 


Apple did not respond to requests for comment. 


The company had denied the allegations in a filing to the CCI last month and had asked the regulator to throw out the case, stressing that its market share in India was an “insignificant” 0-5 per cent. 


CCI however said in the order that Apple’s argument on its market share was “completely misdirected” as the allegations were about anti-competitive restrictions on app developers and not end-users. 


The allegations are similar to a case Apple faces in the European Union, where regulators had last year started an investigation into the US tech giant. 


The CCI ordered its investigations unit to complete the investigation and submit a report within 60 days of the order. Typically, such investigations go on for several months. 


The watchdog is separately conducting an investigation into Google’s in-app payment system as a part of a broader probe into the company after Indian startups had voiced concern last year.   

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