US tech giant Apple in 'violation of competition norms', notes CCI; orders probe

In a key development, the Competition Commission of India (CCI) on Friday ordered a detailed probe against technology major Apple for alleged unfair business practices with respect to its App Store.

In a 20-page order, the Commission underlined that Apple's App Store is the only channel for app developers to distribute their apps to iOS consumers, which is pre-installed on every iPhone and iPad. Third-party app stores, as per the commission, are not allowed to be listed on Apple's App Store as the developer guidelines as well as agreement prohibits app developers from offering such services.

Competition Commission of India orders probe against Apple

"These restrictions imposed by Apple close the market for app stores for iOS for potential app distributors," the order said, adding that it is prima facie a denial of market access for the potential app distributors/app store developers in violation of competition norms. Further, the order said that such practices "prima facie result in limiting/restricting the technical or scientific development of the services related to the app store for iOS", due to reduced pressure on Apple to continuously innovate and improve its own app store, which is also in violation of competition rules. Citing these factors, the regulator has ordered a detailed probe by its Director General (DG).

(With inputs from PTI)