Apple wants to drop power abuse lawsuit in India

Apple has asked the Indian market regulator to dismiss an antitrust case. In that case, Apple is accused of abusing its dominant position with the App Store. Apple says that the company has a small market share in India.

The application for dismissal has been filed with the Indian market regulator CCI, writes Reuters news agency, which has seen the request. The CCI opened an investigation into Apple earlier this year, alleging that Apple is abusing its power to stifle competition by making its own App Store payment method mandatory for iOS app developers. Apple charges a 30 percent commission for in-app purchases from large companies with this payment method; small developers have to pay a 15 percent commission since the end of last year.

Apple denies these allegations in its request. In addition, the company reports that its market share in the Indian smartphone market is ‘small’, at less than 5 percent, while Google with Android would have a market share of ’90 to 100 percent’ in the country. “Apple is not dominant in the Indian market. Without dominance there can be no abuse of power,” the company writes in its dismissal request.

The antitrust investigation began in India in September, Reuters reported at the time. The plaintiff in that case, a nonprofit called the Together We Fight Society, alleges that Apple’s committees harm competition by driving up the cost of app development. The nonprofit also says Apple dominates the Indian “unlicensable mobile operating system” market with iOS. The tech giant contradicts that by stating that the entire smartphone market should be included, including licensable operating systems such as Android.

Apple also called the charge a “proxy-filing,” according to Reuters. The company says the plaintiff is “probably acting in concert with parties with which Apple has ongoing disputes worldwide or cooperates with parties that have previously complained to other regulators.” Apple provided no evidence for those claims in its dismissal petition, Reuters writes.

The CCI has not yet responded to Apple’s response. The regulator will consider Apple’s request in the coming weeks, Reuters reports. The CCI can then start a more extensive investigation, or drop the case completely. The Indian Market Regulator is currently doing research to Google’s payment system. The CCI also concluded earlier this year that Google has used its dominant position with Android to suppress other mobile operating systems.

The Apple App Store and its payment system are under pressure on several fronts. In the US, among others, a lawsuit is currently being played between Apple and Epic Games, in which the latter also claims that Apple is abusing its dominant position with the App Store. Earlier this year, a decision was made in which Apple was largely right, but that case will continue on appeal. The US government also wants to limit the power of tech giants and their app stores. In South Korea, Apple was forced to accept alternative payment systems this year. The EU launched an investigation into Apple’s in-app payment method last year and officially accused Apple of distorting competition earlier this year.