Apple faces antitrust issues in India over App Store practices

Apple’s dominance in India’s app store market has come under increasing scrutiny, as the Competition Commission of India (CCI) continues its investigation into alleged anti-competitive practices.

The inquiry, which began in 2021 following a complaint from the non-profit "Together We Fight Society" (TWFS), accused Apple of using its influence to impose unfair terms on developers and payment systems.

In its defense, Apple argued that it is a much smaller player in India, where Android dominates with over 95% market share. This, Apple contends, limits its ability to exert monopolistic control. Furthermore, Apple pointed out that only 0.08% of Indian developers pay the App Store’s 30% commission, referencing a 2022 parliamentary report.

However, by mid-2024, the CCI concluded that Apple exerts significant influence in India’s digital services market. In August of the same year, Apple temporarily halted the investigation, citing concerns over sensitive data, including rare disclosures of its Indian sales figures.

The CCI then recalled its earlier report, issued a revised version, and asked all parties to destroy previous copies. But in November 2024, Apple alleged that TWFS failed to comply with these orders and sought to delay the investigation again. Reuters reports that the CCI rejected Apple’s request, calling it “untenable.”

The stakes for Apple are pretty high if found guilty. Potential penalties could include fines or significant changes to its App Store operations, such as lower commissions or enabling alternative payment solutions. The CCI has also asked Apple to submit its financial records for fiscal years 2021–2024, likely to inform penalty calculations.

Globally, Apple’s practices have also come under fire. In the European Union, for example, the company faces billions in potential fines for music streaming restrictions, anti-steering policies, and geo-blocking practices.

Meanwhile, in Indonesia, Apple’s failure to meet local production requirements has led to an iPhone 16 sales ban. These challenges underscore a growing regulatory pushback on Apple’s ecosystem strategies.

India’s CCI investigation could have far-reaching consequences for Apple, especially in one of the world’s largest smartphone markets. As the CCI prepares to finalize its findings, Apple’s ability to navigate these regulatory hurdles may shape its future in India and beyond.