: CCI orders probe against Apple #finance #StockMarketNEWS #Business PTI New Delhi The Competition Commission of India (CCI) on Friday ordered a detailed probe against technology major Apple for

Posted in: #finance #StockMarketNEWS #Business

CCI orders probe against Apple #finance #StockMarketNEWS #Business
PTI

New Delhi

The Competition Commission of India (CCI) on Friday ordered a detailed probe against technology major Apple for alleged unfair business practices with respect to its App Store.

It was alleged that Apple uses anti-competitive restraints and abuse of dominant practices in markets for distribution of applications (apps) to users as well as in processing of payments for digital content used within iOS mobile apps.

The complaint was filed against Apple Inc and Apple India Pvt Ltd.

In a 20-page order, the watchdog said Apple’s App Store is the only channel for app developers to distribute their apps to iOS consumers which is pre-installed on every iPhone and iPad.

“Further, third party app stores are not allowed to be listed on Apple’s App Store as the developer guidelines as well as agreement prohibit app developers from offering such services These restrictions imposed by Apple foreclose the market for app stores for iOS for potential app distributors,�? the order said.

According to the CCI, this prima facie results in denial of market access for the potential app distributors/app store developers in violation of competition norms.

Further, such practices prima facie result in limiting/restricting the technical or scientific development of the services related to app store for iOS, due to reduced pressure on Apple to continuously innovate and improve its own app store, which is also in violation of competition rules, the order said.

Citing these factors, the regulator has ordered a detailed probe by its Director General (DG).

Apple did not respond to a query on the CCI probe.

To assess the complaint, the CCI has taken the ‘market for app stores for iOS in India�? as the relevant one.

The watchdog said, the app developers appear to be dependent on the Apple’s App Store to reach the app users and app users are also dependent on the App Store to download apps.

“Thus, the Commission is of the prima facie view that Apple holds a monopoly position in the relevant market for app stores for iOS in India. This dependence of the app developers appear to result in acceptance of Apple’s mandatory and non-negotiable rules inter alia relating to distribution of apps through App Store, by the latter,�? the order said.

Among other aspects, the watchdog observed that Apple conditions the provision of app distribution services on the app developer accepting supplementary obligations which by their nature or according to commercial usage, have no connection with the subject of the contract for provision of distribution services.

“This appears to be in violation of Section 4(2)(d) of the Act.