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Apple is under investigation in India! App Store is accused of monopoly

2024-07-15

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According to a Reuters report on July 12, a confidential report seen by Reuters showed thatAn investigation by India's antitrust regulator has found that Apple has engaged in "abusive acts and practices" by leveraging its dominant position in the app store market for its iOS operating system.

The Competition Commission of India has been investigating Apple since 2021 over possible abuse of its dominant position in the app market by forcing developers to use its proprietary in-app purchase system.


Image source: Photo by Zhang Jian, reporter of China Business Network

Apple has denied wrongdoing and said it has only a small market share in India, where phones using Google's Android software dominate.

In its 142-page report, the CCI's investigative arm said Apple had "significant influence" over how digital products and services are delivered to consumers, particularly through its iOS platform and App Store.

Apple and the Competition Commission of India did not respond to requests for comment.

The U.S. Department of Justice and several states jointly file antitrust lawsuit against Apple

According to CCTV News, on March 21 local time, U.S. Attorney General Merrick Garland stated at a press conference that day that the U.S. Department of Justice and attorneys general of more than a dozen states filed an antitrust lawsuit against Apple.The lawsuit alleges that Apple has used its control over Apple product hardware and software to monopolize the mobile phone market, harming the interests of consumers, developers, and rival companies.

It is reported that the lawsuit filed by the US Department of Justice and 16 attorneys general in the federal court in New Jersey stated that Apple's anti-competitive behavior went beyond the normal scope of its mobile phone and watch business.


Image source: Photo by Zhang Jian, reporter of China Business Network

Garland said the Supreme Court defines monopoly behavior as "conduct that controls prices or excludes competition." Justice Department officials also said they did not rule out using company splits to resolve the antitrust lawsuit.

Apple has said complying with regulations would cost a lot of money, could prevent it from launching new products or services and could hurt customer demand.

EU fines Apple 1.84 billion euros

According to CCTV News, on March 4 local time, European Commission Executive Vice President and Competition Commissioner Vestager said on social mediaOn the same day, the European Union fined Apple 1.84 billion euros on the grounds that Apple had monopolistic behavior in the streaming music business.

Vestager said that Apple has "abused" its dominant position in the distribution of streaming music software in the Apple Store for 10 years, preventing streaming music software vendors from informing consumers that "there are other cheaper paid music services outside the Apple ecosystem," thus violating EU antitrust regulations.


Image source: Daily Economic News data map

When streaming music software providers provide services through the Apple Store, they need to pay Apple a 30% commission, and they are unable to inform consumers on Apple devices that the commission is included in the total price, provide consumers with links to cheaper options, or even tell consumers via email that there are other cheaper options.

The European Commission believes that Apple's practice "may have resulted in many" users of Apple's operating system paying "much higher" fees for streaming music services because streaming music software vendors need to pay Apple "high commissions and pass them on to consumers."

Vestager said Apple must now allow streaming music software providers to "communicate freely" with users within Apple's operating system.

Apple is dissatisfied with the penalty decision and said it will appeal. Apple said the European Commission "has not found credible evidence of consumer harm and ignores the reality of this thriving market that is full of competition and rapid development."

Russia's Federal Antimonopoly Service: Apple has paid 1.2 billion ruble antitrust fine

According to the news released by the Russian Federal Antimonopoly Service on January 22, Apple paid the 1.2 billion ruble antitrust fine on January 19.

It is reported that the Russian Federal Antimonopoly Service ruled in July 2022 that Apple Inc. had violated the Russian Antimonopoly Law. On January 17, 2023, the Russian Federal Antimonopoly Service issued a fine of 1.2 billion rubles to Apple.

Daily Economic News integrates CCTV News and Reference News