Apple has argued it is too small a player in India.
An investigation by India's antitrust body has found that Apple exploited its dominant position in the market for app stores on its iOS operating system, engaging "in abusive conduct and practices", a confidential report seen by Reuters showed.
The Competition Commission of India (CCI) has been investigating Apple Inc since 2021 for possibly abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system.
Apple has denied wrongdoing saying it was a small player in India where phones that use Google's Android system are dominant.
The CCI's investigations unit, in its 142-page report which is not public but was seen by Reuters, said Apple wields "significant influence" over how digital products and services reach consumers, especially through its iOS platform and App Store.
"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,"
the CCI unit said in the June 24 report.
The Indian investigation report comes as Apple faces increased antitrust scrutiny in other regions.
In June, European Union antitrust regulators said Apple breached the bloc's tech rules, which could result in a hefty fine for the iPhone maker. The company also faces an investigation into new fees imposed on app developers.
The CCI report is the most critical stage of the Indian investigation and it will now be reviewed by the watchdog's senior officials.
Apple and other parties will be allowed to respond before a final decision is reached, which could include monetary fines as well as directives to change business practices.
Source: Reuters