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 30 percent 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" 0-5 percent, while Google commands 90-100 percent 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 November 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'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 US 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 2 percent 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 US, it is locked in a legal
battle with Fortnite 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, regulators last year
started an investigation into Apple's in-app fees for the 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 30 percent," Apple said.
"Competing platforms have charged
similar or higher commissions as Apple. Particularly, Google has charged a 30
percent commission on its app store," it said. © Reuters
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