Apple Could be Subject to Antitrust Case in India Over App Store’s In-App Purchase System

BY Smidh

Published 2 Sep 2021

iPhone App Store

Apple could be the subject of an investigation in India for forcing app developers to use its proprietary in-app purchasing system following a complaint from the non-profit “Together We Fight Society”

The European Union is already investigating Apple for similar reasons. The company gets a 15-30 percent commission for every in-app transaction that happens through its purchasing system.

“The existence of the 30% commission means that some app developers will never make it to the market … This could also result in consumer harm,” said the filing, which has been seen by Reuters.

The Competition Commission of India (CCI) is reviewing the matter, and it could order a wider investigation into this unfair practice from Apple in the coming weeks.

Apple has already announced several major changes to the App Store after settling a lawsuit by small US developers and ending a probe from the Japan Fair Trade Commission (JFTC).

As a part of the changes, Apple will allow “reader” apps to include in-app links and buttons to allow users to sign up and manage their accounts directly on their website. This move will greatly benefit the likes of Netflix, Spotify, Kindle, and others.

Last week, Apple announced that it would allow developers to use email and other forms of communication to reach out to their customers and inform them about alternative payment methods outside of the App Store. It will also be paying $100 million to small US developers as a part of the settlement process.

Just earlier this week, the South Korean parliament passed a bill that will force Apple and Google to offer alternative payment systems in their respective app stores.