Apple Could Face Investigation in India Over App Store In-App Purchase System

Apple could be facing a widespread investigation into the App Store in India, and more specifically, the company's in-app purchasing system, which grants it a 15% to 30% commission for all purchases made, reports Reuters.

app store blue banner
The Competition Commission of India (CCI), which oversees cases of possible anti-competitive and antitrust behavior, is reviewing an antitrust challenge case against Apple presented by a non-profit Indian group. The group claims, in their case, that Apple's standard 30% commission for in-app purchases "hurts competition" since it raises costs for both the developer and the customer.

"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.

Apple has already faced countless similar cases worldwide, including in the European Union and by developer groups in the United States. In its current stage, the case is not prompting a more exhaustive investigation by the Indian government. Instead, Reuters says that it will be reviewed by the CCI in the coming weeks, possibly leading to a probe.

The group behind the case is ultimately asking for Apple to allow third-party payment methods into its app, allowing developers to bypass its 15% to 30% commission. The new case was reported just hours after Apple announced that, beginning sometime next year, it will allow "reader" apps to link users to external websites for purchases.

The new policy change is the second of just the past few weeks. Last week, Apple conceded to allow developers to email users about payment methods available outside of their apps. However, the new changes stop short of not requiring developers to use the company's proprietary in-app purchasing system and instead allows them to just add a clearly distinguished link to an external website for payment.

Popular Stories

iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
ios 18 button bulge

iOS 18 Adds Pop-Out Bezel Animation When Pressing iPhone Buttons

Tuesday June 11, 2024 10:40 am PDT by
iOS 18 includes a small but interesting change for the buttons on the iPhone, adding more of a visual element when changing volume, activating the Action button, or locking the screen. When you press an iPhone button in iOS 18, the display bezel bulges outward slightly. This feature is available for the volume buttons, Action button and the power button, and it will also likely be used for...
maxresdefault

First Look at Messages via Satellite in iOS 18

Thursday June 13, 2024 11:29 am PDT by
Apple has been gradually expanding its suite of satellite connectivity features for iPhone, and iOS 18 brings a significant new one in the form of Messages via satellite. The feature allows users to send and receive iMessages and SMS texts, including emoji and Tapbacks, while out of range of cellular and Wi-Fi networks. CNET met up with Apple's senior director of platform product marketing,...
iOS 18 Wallet Feature

Here's What's New in Apple Wallet on iOS 18 for Event Tickets and More

Friday June 14, 2024 7:32 am PDT by
iOS 18 includes a handful of enhancements to the Wallet app on the iPhone, with new features for Apple Pay, Apple Cash, event tickets, and more. Below, we outline everything new for the Wallet app on iOS 18, based on information from Apple's press release and a WWDC 2024 coding session. Redesigned Event Tickets Event tickets have an all-new design in the Wallet app on iOS 18, complete...

Top Rated Comments

aidler Avatar
36 months ago
More and more countries will follow suit. Good development. ?
Score: 9 Votes (Like | Disagree)
Wildkraut Avatar
36 months ago
As I said, Apple is being sued around the world(US,EU,AU,UK, now India too and more to come). Of course all these lawsuits and antitrust monopoly/duopoly trials will have different outcomes, but overall this will lead to multiple AppStores, multiple Payments Platforms, Open NFC hardware access and the beloved sideloading.
Hate the outcomes, but face it, I will ❤️ it.
Score: 8 Votes (Like | Disagree)
laptech Avatar
36 months ago
Please be extremely clear in your reporting because in a very similar article on the matter you quoted Apple as saying that they will allow app developers to provide a in-app link to the developers website for 'account management' purposes only. 'account management' does not mean 'allow link to external website for payment'. No where has Apple said they will allow an app developer to provide an in-app link for external payments.

Please provide the evidence where Apple has expressly said they will allow app developers to provide in-app links to external websites for payments to take place. If you cannot find it please remove any reference to allowing links to external websites for payment because it's going beyond journalist license to write something that is not true.
Score: 6 Votes (Like | Disagree)
cardfan Avatar
36 months ago

Please be extremely clear in your reporting because in a very similar article on the matter you quoted Apple as saying that they will allow app developers to provide a in-app link to the developers website for 'account management' purposes only. 'account management' does not mean 'allow link to external website for payment'. No where has Apple said they will allow an app developer to provide an in-app link for external payments.

Please provide the evidence where Apple has expressly said they will allow app developers to provide in-app links to external websites for payments to take place. If you cannot find it please remove any reference to allowing links to external websites for payment because it's going beyond journalist license to write something that is not true.
From apple.com: https://www.apple.com/newsroom/2021/09/japan-fair-trade-commission-closes-app-store-investigation/. Apple will also help developers of reader apps protect users when they link them to an external website to make purchases.

Looks clear enough to me.
Score: 3 Votes (Like | Disagree)
CarlJ Avatar
36 months ago

As I said, Apple is being sued around the world(US,EU,AU,UK, now India too and more to come). Of course all these lawsuits and antitrust monopoly/duopoly trials will have different outcomes, but overall this will lead to multiple AppStores, multiple Payments Platforms, Open NFC hardware access and the beloved sideloading.
Hate the outcomes, but face it, I will ❤️ it.
Hurrah! Let's take away consumer choice! Now, instead of choosing between the Apple way of doing things (walled garden, etc.) and the Google way, we'll all only have the Google way available. You get what you wanted, and everyone else gets... what you wanted, instead of maybe what they wanted. Great outcome.
Score: 2 Votes (Like | Disagree)
_Spinn_ Avatar
36 months ago

The group claims, in their case, that Apple's standard 30% commission for in-app purchases "hurts competition" since it raises costs for both the developer and the customer.
Does no one remember how expensive software used to be before the app store? Prices won't go down with third party payments. I haven't seen any news about apps reducing prices when their fee went to 15%.
Score: 2 Votes (Like | Disagree)