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Exclusive-Apple seeks dismissal of India apps market antitrust case, cites tiny market share -Breaking

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© Reuters. FILE PHOTO – A representative of Apple speaks with a customer in a Mumbai Apple Reseller Store on September 1, 2021. REUTERS/Francis Mascarenhas/File Photo

By Aditya Kalra

NEW DELHI (Reuters: Apple Inc. (NASDAQ:) requested India’s antitrust agency to drop a case claiming abuse of market power. The company claimed it was too little to be a participant in South Asian countries where Google is the dominant. This filing was seen by Reuters.

After the Competition Commission of India began reviewing claims that Apple is causing competition, it filed this filing. It was after CCI started looking into allegations that Apple forced app developers to use its proprietary software which could charge up to 30% commission on in-app purchases.

Apple refuted the claims in its CCI filing and stated that India’s market share is a “small” 0-5%. However, Google controls 90-100% of the Indian smartphone market.

Apple does not dominate the Indian market. In a Nov. 16 submission, Apple stated that it is not dominant in India and there cannot be abuse. The submission was signed by Kyle Andeer, Apple’s Chief Compliance Officer.

It stated that “It is already established that Google India is the dominant player.”

Apple and CCI didn’t respond to our request for comment. Google’s Alphabet (NASDAQ) Inc declined to answer questions about Apple’s claims in the filing.

A little-known, non-profit group named “Together We Fight Society” was the complainant. It stated that Apple and iOS are the most popular mobile operating system in non-licensable markets.

Apple countered this in its filing. It stated that the whole smartphone market, which also includes licensed systems such as Android, should be considered.

Apple described Indian complaints as “proxy filings” in their CCI submissions, stating that they were “likely acting with parties with which Apple has ongoing contractual and commercial disputes worldwide and/or have complained to regulators.”

According to the U.S. tech giant, there was no evidence submitted in support of its claims. The non-profit claimed that Apple’s remark had been “made to prejudice” the CCI mind “without any iota proof.”

The CCI will examine Apple’s responses to these allegations over the next few weeks and may order an additional investigation, or even dismiss the case entirely if there is no merit. The CCI does not make public details of its investigations.

Separately, the CCI is investigating Google’s In-App Payment System as part of an overall probe into Google after concerns were expressed last year by Indian Startups.

According to Counterpoint Research only 2% of the 520 million Indian smartphones were powered by Apple’s iOS, with Android being used by the majority. However, it says that Apple has seen its smartphone market more than double in India in five years.

GLOBALISED ISSUE

Apple is currently facing similar claims in various parts of the planet. It is in legal trouble with Epic Games creator for “Fornite”, and South Korea has become the first country to prohibit dominant app store operators preventing developers from using their payment systems.

In the European Union https://reut.rs/38nEVZZ, regulators last year started an investigation into Apple’s in-app fees for distribution of paid digital content and other restrictions.

Apple and Google claim that their apps store fees are covered by their marketing and security benefits.

Apple stated in its CCI filing that the in app commissions that it charges are “not unfair and excessive”, have decreased over time and it has charged smaller developers lower rates.

Apple stated that only a few large developers pay 30%, which is a low rate for many multi-billion dollar conglomerates.

Apple has been criticized for charging higher or similar commissions than other competitors. Google, in particular, has claimed a 30% fee for its app store.”

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