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

sonny iphone 16 pro colors

New iPhone 16 and iPhone 16 Pro Colors Revealed Ahead of Apple Event

Friday September 6, 2024 5:01 am PDT by
Apple is "shaking up its color palette" for its iPhone 16 lineup this year, according to well-connected Bloomberg reporter Mark Gurman. Early iPhone 16 Pro dummy models via Sonny Dickson According to Gurman, the iPhone 16 Pro models will come in a Gold Titanium to replace Blue Titanium, while the Black, White, and Natural Titanium options that debuted with the iPhone 15 Pro will remain...
iPhone 16 Pro Mock Article

How Much Will the iPhone 16 Cost?

Friday September 6, 2024 5:43 am PDT by
Apple's next-generation iPhone 16 series is expected to launch on September 20 and will compete in a quickly evolving smartphone market, and with some notable upgrades rumored, the new models could see price changes compared to previous years. Successive iPhone models always come with new features and hardware upgrades, but Apple typically does not increase the retail prices as a result....
its glowtime event youtube

Report Details Last-Minute Apple Event Rumors About New iPhones, Apple Watches, and AirPods

Friday September 6, 2024 4:40 am PDT by
Bloomberg's Mark Gurman today shared his final expectations for Apple's "It's Glowtime" event, providing some new tidbits and clarifications about the new devices set to be announced on Monday. iPhone 16 Pro Along with larger 6.3- and 6.9-inch display sizes, the iPhone 16 Pro and iPhone 16 Pro Max will have bezels that are "now about a third slimmer" for a "sleeker overall look." The...
Generic iOS 18 Feature Real Mock

iOS 18 Coming Later This Month With These 8 New Features

Tuesday September 3, 2024 12:07 pm PDT by
iOS 18 has been in beta testing for nearly three months, and the software update will finally be released for all compatible iPhones soon. Apple should reveal iOS 18's exact release date during its September 9 event, with the most likely possibility being Monday, September 16. Below, we have highlighted eight key new features included in iOS 18. Note that Apple Intelligence is not coming...
apple watch series 9 display

'Noticeably Thinner' Apple Watch Series 10 to Eventually Get Sleep Apnea Detection

Friday September 6, 2024 4:42 am PDT by
The Apple Watch Series 10 will include a new sleep apnea detection feature, but it may not be available as soon as the new model launches, according to Bloomberg's Mark Gurman. Sleep apnea detection, which builds on the watch's existing sleep tracking, will attempt to determine if a wearer has sleep apnea and then suggest further testing with a medical professional. Gurman had expressed...
iPhone 16 Side 2 Feature

iPhone 16 Pro Rumored to Break This 7-Year Streak at Apple

Friday September 6, 2024 7:41 am PDT by
The upcoming iPhone 16 Pro might break a seven-year streak at Apple. Taiwanese research firm TrendForce today reported that the iPhone 16 Pro will start at $1,099 in the U.S. with 256GB of storage, whereas the iPhone 15 Pro starts at $999 with 128GB of storage. If this information is accurate, it means that the iPhone 16 Pro will cost more for customers who otherwise would have opted for a...

Top Rated Comments

aidler Avatar
40 months ago
More and more countries will follow suit. Good development. ?
Score: 9 Votes (Like | Disagree)
Wildkraut Avatar
40 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
40 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
40 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
39 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
39 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)