Apple asks CCI to dismiss case against Apps Bazaar

The case, filed by Jaipur-based non-profit Together We Fight Society (TWFS), alleges that Apple charges developers for selling apps and in-app items through the App Store, which violates India’s competition rules. Is.

In a November 16 response, the iPhone maker argued that its market share in the country is so low that it can be considered dominant. “Without dominance, there can be no abuse,” said Apple’s response to Kyle Ander, chief compliance officer.

TWFS filed a complaint against Apple in September. It alleged that Apple’s 30% commission against in-app purchases through the App Store raised costs for app developers and customers and acted as a roadblock for smaller developers to market their services.

TWFS President Shivani Dharaniya said her organization has filed a response to Apple’s response with the CCI. “We have stated in our rejoinder that Apple may not have a significant market share in licensable operating systems in India, but it has a significant presence in India among non-licensable operating systems,” Dharaniya said.

Apple’s response to the CCI also claimed the complaint could be a “proxy filing”. The allegation suggests that TWFS is “working closely with parties with whom Apple has commercial and contractual disputes on a global scale and/or who have complained to other regulators.”

Dharaniya denied the allegations and said that Apple has not provided any evidence to support the claim. “We will respond to such claims when Apple presents any evidence that it does not have,” Dharnia said.

Anisha Chand, partner at Khaitan & Co., said, “Apple has adopted the definition of market in its defense as Google is the dominant player in India.” Onward,” said Chand.

“Under competition law, the question of misuse of unfair pricing can be considered only if the entity in question is in dominant position. The latter is not a mere monopoly, but is a function of several factors, of which market share is a major factor.” Is.”

It also cited a 2013 case against Apple that questioned the interconnectedness of its services. The CCI dismissed that complaint saying there was no need for an investigation as Apple had a small market share in India. Chand said Apple is likely to rely heavily on the matter, but should also be aware that technology and the Indian consumer collectively have changed and evolved since then.

“I believe that the case against Apple is likely to be quashed. This can be inferred from the cases of the CCI, citing Sections 3 and 4 of the Competition Act, 2002,” said extensively. That if the overall market share is within 0-5%, there is no significant adverse impact on competition in India,” said Abhishek Singh Baghel, Associate Partner, DSK Legal.

CCI has been in the news for competition regulation of Big Tech as regulators overseas recently made important decisions about the business models of Apple, Google and other tech companies.

Japan’s Fair Trade Commission found Apple’s commission policy anti-competitive in September. In return, Apple announced an agreement that would allow apps with in-app purchaseable items to include external payment links in the country. In addition, South Korea has rolled out a policy that prohibits companies like Apple and Google from forcing their payment modes on app developers.

Apple defended its App Store commission in a case against gaming giant Epic Games, saying the commission serves as a royalty for developers using a uniquely secure platform that it has invested in developing.