As Apple battles the Digital Markets Act in the EU and a burgeoning antitrust lawsuit in the U.S., India has become the latest country to pass judgment on Apple’s embattled iOS business model, paving the way for big changes in the country.
As reported by Reuters, The Competition Commission of India (CCI) has ruled that Apple is engaged in “abusive conduct and practices,” owing to Apple’s iOS App Store business model and the way developers are allowed to distribute apps and sell services through in-app purchases.
The report claims Apple has “significant influence” on iOS and the App Store, stating the “Apple App Store is an unavoidable trading partner for app developers, and resultantly, app developers have no choice but to adhere to Apple's unfair terms, including the mandatory use of Apple's proprietary billing and payment system.”
It’s broadly the same conclusion reached by the European Commission and could signal an opening up of the iPhone in India, much like the one we’ve seen in the EU.
Apple’s India headache
India represents a growing market for Apple, news Monday claims Apple’s annual sales in the country have surged 33% to $8 billion in the year up to March 2024. Despite this, Apple still only has a 3.5% share of India’s 690 million strong smartphone market.
What happens next is anyone’s guess, but if the path taken in the EU is anything to go by, Apple will likely have to introduce a series of measures to appease the CCI. The report is still to be reviewed by senior officials, and Apple will be able to respond, but the wind only seems to be blowing one direction when it comes to Apple’s iOS business model.
As with the EU, India-based iPhone users might soon benefit from changes including alternative app marketplaces, web distribution of apps (sideloading), alternative third-party payment methods, and more. Other measures could include more options for users when it comes to choosing third-party browsers over Safari, too.
The news will likely come as an unpleasant surprise to CEO Tim Cook, who called India “an incredibly exciting market” and a “major focus” during Apple’s May earnings call. A small bright spot, Apple is maintaining a strong push into India as it looks to diversify its manufacturing base and reduce its reliance on China. As such, the company arguably has much more leverage in India than in places like the EU, where Apple’s major supply chain partners don’t have a manufacturing presence. Apple's iPhone 15 was the first to be made in India from launch, and it's likely iPhone 16 and iPhone 16 Pro will be made there too.
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