Exclusive-Apple seeks dismissal of India apps market antitrust case, cites tiny market share
NEW DELHI : Apple Inc has asked India's antitrust watchdog
to throw out a case alleging abuse of market power in the apps market, saying
it is too small a player in the South Asian country where Google is dominant, a
filing seen by Reuters shows.
The filing was made after the Competition Commission of
India (CCI) started reviewing allegations that Apple hurts competition by
forcing app developers to use its proprietary system which can charge
commissions of up to 30per cent on in-app purchases.
Apple denied the allegations in its filing to the CCI and
stressed that its market share in India is an "insignificant" 0-5per
cent, while Google commands 90-100per cent as its Android operating system
powers most other smartphones.
"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.
Apple and the CCI did not respond to a request for comment.
A spokesperson for Alphabet Inc's Google declined to comment when asked about
Apple's assertions in the filing.
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.
Apple countered that in its filing, saying the entire
smartphone market - which includes licensable systems like Android - is the
market that should be taken into consideration.
Apple also described the Indian complaint as a "proxy
filing" in its CCI submission, saying that 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 U.S. tech company did not give any evidence in its
submission to support its claim. The non-profit told Reuters that Apple's
remark was "made to prejudice the mind" of the CCI "without any
iota of proof."
In the coming weeks, the CCI will review Apple's response to
the allegations and could order a wider investigation or dismiss the case
altogether if it finds no merit in it. Details of CCI investigations are not
publicly disclosed.
The CCI is separately conducting an investigation into
Google's in-app payment system as part of a broader probe into the company
after Indian startups last year voiced concern.
Apple's iOS powered about 2per cent of 520 million
smartphones in India as of end-2020 with the rest using Android, according to
Counterpoint Research, though it adds that Apple's smartphone base in the
country has more than doubled in the last five years.
GLOBAL ISSUE
Apple has been grappling with similar allegations in other
parts of the world. In the United States, it is locked in a legal battle with
"Fornite" creator Epic Games over the issue and South Korea this year
became the first country to ban dominant app store operators from forcing
developers to use their payment systems.
In the European Union https://reut.rs/38nEVZZ, regulators
last year started an investigation into Apple's in-app fees for distribution of
paid digital content and other restrictions.
Companies like Apple and Google say their fees cover the
security and marketing benefits their app stores provide.
In its CCI filing, Apple argued that the in-app commissions
it charges are "not unfair or excessive" and have decreased over
time, adding that it charges lower rates from small developers.
"Only a small number of large developers, many of which
are multi-billion-dollar conglomerates, pay the headline rate of 30per
cent," Apple said.
"Competing platforms have charged similar or higher
commissions as Apple. Particularly, Google has charged a 30per cent commission
on its app store," it said.
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