India Also Draws the Sword... Antitrust Investigation Over Apple App Store Commission Controversy

[Asia Economy Reporter Joselgina] Following South Korea, Indian authorities have also taken action against Apple's App Store commission practice, which forces developers to use its own payment system (in-app payment) and charges a hefty 30% commission.

According to the Wall Street Journal (WSJ) on the 3rd (local time), the Competition Commission of India, the country's antitrust regulator, recently identified that Apple violated India's antitrust laws and has ordered an investigation. A related report is expected to be compiled within 60 days.

This follows ongoing criticism that Apple's App Store in India imposes so-called 'app tolls' on application developers, causing harm and hindering competition. Apple has long enforced an in-app payment method that incurs a 30% commission on apps distributed through its own app market, the App Store. For example, if a consumer pays 10,000 won for a game item, Apple takes 3,000 won.

The controversy over such app tolls has expanded globally since 2020, when Epic Games opposed the commission policy and built its own payment system, resulting in its removal from the App Store. After Google Play Store also enforced in-app payments and a 30% commission policy following Apple App Store, South Korea enacted the 'Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act)' to prohibit app market operators from forcing specific payment methods. Epic Games, removed from the App Store, is currently engaged in legal battles with Apple and Google.

Notably, India is a market identified by Apple CEO Tim Cook as highly profitable. Cook described it as "optimistic" with "strong demand for new products." Tarun Pathak of market research firm Counterpoint pointed out that "Apple's user base in India is still relatively small," adding that "the financial impact from antitrust actions will likely be limited, but the situation will be closely monitored." He also noted that many global app developers based in India could be affected by app market operators' commission policies.

WSJ reported that "the Indian government is strengthening regulations on global technology companies operating within the country."

This content was produced with the assistance of AI translation services.