India challenges Apple
- India's competition authority moved toward a final hearing challenging Apple's App Store rules and a possible multibillion-dollar penalty. - The probe targets app distribution policies that affect subscriptions, fees, and direct-sales economics for creators. - Increased regulatory scrutiny of app stores raises questions about future fees and distribution choices for author businesses. (finance.yahoo.com)
India’s antitrust watchdog has set Apple up for a final hearing on May 21 after saying the company still has not turned over financial data in its App Store case. (finance.yahoo.com) A Competition Commission of India order dated April 8 said Apple had not submitted its financials or its response to the investigation since October 2024. The regulator moved to fast-track the penalty phase instead. (finance.yahoo.com) Apple has separately challenged India’s penalty law in the Delhi High Court, arguing the rules could expose it to a fine of as much as $38 billion because penalties can be tied to global turnover, not just India revenue. (money.usnews.com) The case centers on how the App Store works on iPhones. India’s investigation says Apple required developers to use its own in-app purchase system for digital goods and services, which let Apple control billing and commissions inside iOS apps. (finance.yahoo.com) That matters for subscription apps, dating services, music platforms and creator businesses that sell directly to users. If a platform owner controls checkout, it can shape fees, margins and whether an app can steer customers to cheaper payment options outside the app. (finance.yahoo.com) India’s probe has been running since 2021, after a complaint alleged Apple was abusing its position in app distribution on iOS. In July 2024, a 142-page investigation report seen by Reuters concluded Apple had engaged in “abusive conduct and practices” in that market. (finance.yahoo.com) Apple has denied wrongdoing and said it is a small player in India, where phones running Google’s Android account for most of the market. The company has also argued that its App Store rules protect users’ privacy and security. (gadgets360.com) The fight in India lands as Apple faces similar pressure elsewhere over app store fees, payment rules and limits on outside links. Regulators in the European Union and the United States have also pushed harder on how large platforms govern digital marketplaces. (timesofindia.indiatimes.com) The next step is narrower than the broader debate over app stores: India’s regulator now has a hearing date and a live dispute over how any penalty would be calculated. Apple’s challenge to that formula could matter almost as much as the finding itself. (finance.yahoo.com)
