Apple seeks dismissal of India antitrust case on ground of lesser market share: Report

Apple Inc has requested India’s antitrust authority to dismiss a case alleging market power abuse in the apps industry, claiming that it is too tiny a player in India, where Google dominates, according to a filing obtained by Reuters.

The complaint was filed after the Competition Commission of India (CCI) began investigating claims that Apple is harming competition by pushing app developers to use its proprietary system, which can charge up to 30% commission on in-app sales.

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In its filing to the CCI, Apple refuted the charges and stated that its market share in India is “insignificant” at 0-5% but Google controls 90-100 percent of the market because its Android operating system drives the majority of other handsets.

“Apple is not dominant in the Indian market … Without dominance, there can be no abuse,” Apple said in the submission dated Nov. 16 which was signed by its Chief Compliance Officer, Kyle Andeer.

“It has already been established that Google is the dominant player in India,” it added.

A request for comment from Apple and the CCI was not returned. When contacted about Apple’s claims in the petition, a spokesman for Alphabet Inc’s Google declined to comment to Reuters. 

The complainant in the case, a little-known non-profit group called “Together We Fight Society”, said that Apple with iOS dominates the market for non-licensable mobile operating systems.

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In its filing, Apple rebutted this, claiming that the entire smartphone industry – which includes licensable systems like Android – should be considered. 

In its CCI submission, Apple also called the complaint a “proxy filing”, stating the complainant was “likely acting in concert with parties with whom Apple has ongoing commercial and contractual disputes globally and/or that have complained to other regulators.” 

The American IT company provided no proof to back up its assertion. Apple’s remark, according to the non-profit, was “made to prejudice the mind” of the CCI “without any iota of proof,” according to Reuters. 

The CCI will assess Apple’s response to the charges in the following weeks and may request a more thorough inquiry or dismiss the matter entirely if it finds no merit in it. The findings of CCI investigations are not made public.

Following concerns from Indian entrepreneurs last year, the CCI launched a separate investigation into Google’s in-app payment system as part of a broader examination against the business. 

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According to Counterpoint Research, Apple’s iOS powered roughly 2% of India’s 520 million smartphones as of end-2020, with the rest using Android. However, Apple’s smartphone base in the country has more than doubled in the last five years. 

Similar complaints have been levelled against Apple in various parts of the world. It is involved in a legal battle with Epic Games, the creator of “Fornite”, in the United States, and South Korea became the first jurisdiction to prohibit dominant app store owners from forcing creators to use their payment systems this year.

Regulators in the European Union launched an investigation into Apple’s in-app levies for the distribution of paid digital content and other restrictions last year. 

Apple and Google claim that their fees cover the security and marketing benefits provided by their app marketplaces. 

Apple said in its CCI filing that the in-app commissions it charges are “not unfair or excessive” and have reduced over time, and that it charges smaller developers lesser rates.

“Only a small number of large developers, many of which are multi-billion-dollar conglomerates, pay the headline rate of 30%,” Apple said.

“Competing platforms have charged similar or higher commissions as Apple. Particularly, Google has charged a 30% commission on its app store,” it said.