India’s Competition Commission of India (CCI) is currently reviewing the findings of an investigation into Apple’s app store billing policy, according to reports. This development comes as Google is already embroiled in a legal battle with the CCI over its own billing policy in the Madras High Court. Legal experts have indicated that the parties involved in the case will be called upon to present their arguments, and the CCI’s stance is expected to align with its previous order regarding Google.
The CCI might request Apple to make changes to its app store billing and commission policies, similar to what was demanded of Google. However, this could pose a challenge due to Apple’s firm stance on its iOS operating system and its “walled garden” approach. The company’s emphasis on curated user experience and privacy could be compromised if forced to make changes that open up potential risks.
In October 2022, the CCI ordered Google to allow third-party billing systems for payments on its app store, in addition to its own Google Play Billing System. Google was also fined a substantial amount. Google has since appealed the order, and the case is currently pending.
Industry insiders have expressed concerns that imposing similar restrictions on Apple could contradict the company’s core principles and disrupt the curated user experience it provides. It may also introduce security and privacy vulnerabilities.
The investigation into Apple’s alleged anti-competitive practices was concluded in February, but the report was not released at the time due to the absence of a sitting chairperson in the CCI. With the appointment of a new chairperson in May, Ravneet Kaur, it is anticipated that the Apple matter will be addressed soon.
The probe was initiated in December 2021 after accusations were made by the not-for-profit organization Together We Fight Society. The allegations revolved around Apple’s high commission charges and its restriction on third-party payment alternatives on the app store. Similar complaints were subsequently filed by the Alliance of Digital India Foundation (ADIF) and Match Group, leading to the consolidation of the cases for investigation.
According to the NGO’s complaint, Apple mandates app developers to use its in-app payment solution and charges a 30% commission, which it deems excessive compared to fees charged by other payment processors.
While Google faced similar allegations, there is a fundamental difference in how Apple and Google operate. Google’s Android is an open-source mobile operating system, allowing more flexibility and participation from different entities. On the other hand, Apple’s iOS is exclusive to iPhones and is not licensable, giving Apple complete control over its ecosystem.
