Apple to face antitrust case in India over its in-app payment fee: Report

By Team Newsable | First Published Sep 2, 2021, 5:43 PM IST

According to the reports, the Competition Commission of India (CCI) would evaluate the situation in the coming weeks and conduct investigations. CCI may even postpone the examination if it finds no merit, citing a source familiar with the subject.

Apple's next market is India, where it may face antitrust charges for requiring developers to utilise its in-app payments service. Apple previously barred app developers from contacting customers through email for payment-related purposes. While Apple enables app developers to offer their services directly, all in-app purchases made within applications downloaded from the App Store must use the iOS payment system and pay Apple a charge ranging from 15 per cent to 30 per cent of total revenues.

Epic, a gaming developer, has sued Apple in the United States for this behaviour. Google, which similarly charges developers a fee and takes a share of in-app purchases made by users, is also facing allegations of monopolistic practices.

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As the debate over Apple and Google's App Store practises has heated up, the two firms increasingly seek to appease developers and regulators. Recently, Apple conceded applications like Netflix and others in Japan as it prepared to confront legal, regulatory, and legislative challenges in that nation over its Apple Store restrictions. The antitrust complaint in India argues that Apple's up to 30 per cent charge harms competition by increasing expenses for both users and app developers. According to the reports, the Competition Commission of India (CCI) would evaluate the situation in the coming weeks and conduct investigations. CCI may even postpone the examination if it finds no merit, citing a source familiar with the subject.

Notably, the complainant is the Rajasthan-based non-profit organisation Together We Fight Society, which told the media that it did so to safeguard the interests of Indian consumers and entrepreneurs.

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Apple stated last week in a statement that it will allow app developers to contact consumers through email or other communication channels to advise them about an alternative payment option that does not include Apple's fee cut. In addition, the firm announced the establishment of a $100 million fund for payments to small app developers.

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