An investigation by India's antitrust body has found that Apple (NASDAQ:AAPL) exploited its dominant position in the app store market on its iOS operating system, engaging in "abusive conduct and practices," according to a confidential report seen by Reuters.
The publication said the Competition Commission of India (CCI) has been investigating Apple since 2021 for potentially abusing its dominant position. The investigation focuses on Apple's alleged forcing of developers to use its proprietary in-app purchase system.
Apple has denied any wrongdoing, claiming it is a minor player in India, where Google’s Android system is dominant.
Reuters adds that the CCI’s 142-page report, dated June 24, indicates that Apple has "significant influence" over how digital products and services reach consumers, particularly through its iOS platform and App Store.
It reportedly states, "Apple App Store is an unavoidable trading partner for app developers, and resultantly, app developers have no choice but to adhere to Apple's unfair terms, including the mandatory use of Apple's proprietary billing and payment system."
This investigation aligns with Apple's increasing antitrust scrutiny globally.
In June, EU regulators accused Apple of breaching its tech rules, potentially resulting in significant fines. Apple is also under investigation for imposing new fees on app developers. In response to the EU’s Digital Markets Act, Apple plans to allow software developers to distribute their apps outside its App Store in the EU.
Reuters adds that the CCI report marks a critical stage in the investigation. Senior officials will review it, and Apple, along with other parties, will have the opportunity to respond before a final decision is made, potentially including fines and directives to change business practices.
The case was initially filed by the non-profit group "Together We Fight Society," arguing that Apple's in-app fee of up to 30% raises costs for app developers and customers.