The Competition Commission of India (CCI) on Friday ordered a detailed probe against technology major Apple for alleged unfair business practices concerning 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 the processing of payments for digital content used within iOS mobile apps.
The complaint was filed against Apple Inc and Apple India Pvt Ltd, PTI reported from New Delhi.
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 are 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 forecloses 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 the app store for iOS, due to reduced pressure on Apple to continuously innovate and improve its app store, which is also in violation of competition rules, the order said.