By Anjani Kumar, Senior Journalist
CCI investigates Apple’s App Store for alleged anti-competitive practices, spotlighting Rs. 44,447 crore in 2024 sales, as Indian developers’ global earnings triple.
The Competition Commission of India (CCI) launched an investigation into Apple Inc. in New Delhi on December 31, 2021, following a complaint by Together We Fight Society, alleging abuse of dominance in the iOS app store market, which generated Rs. 44,447 crore in India in 2024. The probe examines restrictive policies and high commissions, aiming to ensure fair competition.
CCI’s Allegations Against Apple
Triggered by a complaint from Together We Fight Society, the CCI’s probe targets Apple’s App Store practices, accusing the company of violating Section 4 of the Competition Act, 2002. Key allegations include:
Restrictive Policies: Apple mandates exclusive app distribution through its App Store, limiting developers’ options.
Mandatory In-App Payments: Developers must use Apple’s payment system, incurring a 30% commission, unlike the 2–5% fees on other platforms.
Arbitrary Guidelines: App Store Review Guidelines are applied inconsistently, deemed discriminatory.
Excessive Commissions: The 30% fee is considered unfair, impacting competition in downstream markets.
Marketing Restrictions: Apple prohibits apps from informing users about alternative payment options, potentially raising costs.
Data Access: Apple’s access to competitors’ user data may provide an unfair advantage.
Third-Party App Stores: Prohibition of third-party app stores stifles competition.
The CCI’s prima facie findings classify Apple as dominant in the iOS app store market in India, ordering a detailed investigation by the Director General under Section 26. Penalties could reach 10% of Apple’s average global turnover over three years, potentially billions of dollars.
Apple’s Market Influence and Indian Performance
Apple, with a global market capitalization of $3.57 trillion as of May 2025, led the smartphone market in 2023 with a 20% share, shipping 234.6 million iPhones. In India, Apple’s smartphone market share is 6–7%, not 0–5% as claimed, driven by premium iPhone sales. The App Store generated Rs. 44,447 crore ($5.3 billion) in India in 2024, with Indian developers’ global earnings tripling to $1.2 billion, per an Apple-backed study by Analysis Group. This growth reflects India’s 1.2 million developer community, one of the largest on iOS.
Apple’s Defense Strategy
Apple counters the allegations, emphasizing its business model and market dynamics:
Integrated Ecosystem: Apple argues its hardware-software-services ecosystem enhances user experience, security, and privacy.
Competitive Market: With Samsung (17% share) and Xiaomi (12%) in India, Apple denies dominance.
Commission Structure: Most developers pay 15% or no commission, with the 30% fee covering infrastructure and user base access.
Security: Stringent App Store guidelines protect users from malicious apps.
Legal Precedent: Apple cites the 2021 Epic Games v. Apple U.S. ruling, which upheld most App Store policies.
Informant Motives: Apple questions Together We Fight Society’s ties to global litigants.
Apple also highlights its low market share in India’s Android-dominated market (93%) and the ease of switching operating systems.
Global Scrutiny of Apple
Apple faces similar accusations worldwide. The EU’s Digital Markets Act (DMA) fines Apple €1.8 billion (2024) for anti-steering rules and probes its core technology fee. In the U.S., a March 2024 antitrust lawsuit by the Justice Department and 16 states accuses Apple of locking users into its ecosystem. Japan and South Korea have also mandated alternative payment options for apps.
Implications for India
The CCI investigation, ongoing as of May 2025, could reshape India’s app economy. A ruling against Apple may lower developer costs, fostering innovation among India’s 1.2 million developers. However, Apple’s ecosystem benefits, like security and user trust, are valued by 90% of Indian iOS users, per a 2024 survey. The final report, expected by late 2025, will determine if Apple must adjust its practices or face fines.
