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Antitrust Case Against Apple

Updated: Sep 22, 2021

Apple Inc. has had a long record of antitrust challenges and controversies from all around the globe. With international regulators clamping down on giant tech companies, this has just increased. In the cutting-edge addition, the agency is dealing with an antitrust challenge in India too.

Apple is a monopoly in the apps market. To promote healthy competition and restrict monopolistic practices, Antitrust law was enforced. Antitrust laws protect customers from unfair business practices such as price-fixing, market apportionment, bid-rigging, and monopolies.

Apple faces a lawsuit in India similar to that faced by the European Union on the grounds of exploiting its monopolistic position in the app store market by charging in-app payment of 30% and paid digital content. This restricts the entry of some app developers into the market thus curtailing competition.

With the increase in the number of active iPhone users in India by 22.85% in 2017, Apple has obtained a dominant position in the Indian market. Apple allegedly outraged its power by forcing developers to use its in-app purchase system consequently reducing the competition by prohibiting the developers from informing the users of alternative purchasing possibilities. IAP system also gives Apple control over relationships with customers of competitors while restraining its competitors of valuable customer data. Apple acts as a gateway for other app developers to enter the iOS market giving Apple an unfair advantage over others by charging higher prices and hindering customers' choice.

Apple has removed some restrictions for app developers by permitting them to use email to share information with customers about payment alternatives outside the iOS app.

Competition Commission of India will investigate the matter to see if the law has been violated.

By- Nivedita Kalia & Kashika Chugh


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