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India's antitrust agency has finally launched an investigation into Apple's raising of the threshold for app market access

The Competition Commission of India (CCI) formally ordered an investigation into Apple's business practices in the country on Friday (December 31), which tentatively determined that Apple had violated antitrust laws.

CCI asked its investigation department to complete the investigation and submit a report within 60 days of the order being issued.

Previously, a little-known nonprofit accused Apple of abusing its dominance in the app market, primarily for forcing app developers to use its proprietary in-app purchase system.

The group argues that Apple not only charges up to 30 percent commissions from in-app purchase payments, but also sets a number of other limits. Through these rules, Apple raised the bar for market access, not only consolidating its dominance, but also increasing the cost to many app developers and users.

The CCI also agrees that Apple's restrictions have indeed prevented some app developers and distributors from entering the market, "and the commission is convinced that, based on the evidence available at this stage, it is worthwhile to investigate Apple." ”

Last month, according to documents obtained by Reuters, Apple denied the allegations and stressed that its market share in India of 0%-5% can be said to be "insignificant", while Google has a 90%-100% market share.

The CCI also responded, arguing that Apple's argument was "completely wrong" because the CCI's investigation focused on "Apple's abuse of its power on the side of app developers, not on the consumer side."

According to Counterpoint Research, among the 520 million smartphones in India by the end of 2020, Apple's iOS system accounted for about 2%, and the rest used Android. However, it is undeniable that in the past 5 years, Apple's smartphone base in India has more than doubled.

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