NGO Files Antitrust Complaint Against Apple in India

India non-profit group Together We Fight Society has filed an antitrust complaint against Apple, Reuters reported. It once again focuses on the cut of App Store transactions the company takes.

The allegations are similar to a case Apple faces in the European Union, where regulators last year started an investigation into Apple’s imposition of an in-app fee of 30% for distribution of paid digital content and other restrictions. The Indian case was filed by a little-known, non-profit group which argues Apple’s fee of up to 30% hurts competition by raising costs for app developers and customers, while also acting as a barrier to market entry. “The existence of the 30% commission means that some app developers will never make it to the market … This could also result in consumer harm,” said the filing

Research Indicates Apple Has Had Its Best-Ever Quarter in India

Apple’s latest earning call will take place on Wednesday, and you can expect to hear lots about progress in India. TechCrunch reported on new research that indicated that last quarter was the company’s best-ever in the crucial market.

Apple shipped more than 1.5 million iPhone units in India in the quarter that ended in December, up 100% year-on-year, making this its best quarter in the world’s largest smartphone market to date, according to research firms Counterpoint and CyberMedia Research. Thanks to the improved sales of older generation iPhone 11, iPhone XR, iPhone 12 and the newer iPhone SE, Apple doubled its market share in India to 4% in the quarter, the research firms said. Overall, Apple shipped more than 3.2 million iPhone units in India in 2020, up 60% year-on-year, Counterpoint said. The shipment growth comes months after Apple launched its online store in the country and offered customers a wide-range of financing and upgrade options, AppleCare+, and lucrative perks such as a free set of AirPods with the purchase of iPhone 11. The company plans to open its first physical retail store in the country later this year.

India Just Passed a Law That Will Help Apple

As part of a new proposal, India said that single-brand retail companies like Apple can open online stores before they set up physical stores in the country.

This would allow Apple, which has yet to set up retail stores in the country, to start selling a range of products through its own online store. Currently, Apple sells its products in India through partnered third-party offline retailers and e-commerce platforms such as Amazon India, Flipkart and Paytm Mall.

India is Apple’s next—and perhaps last—country for big potential growth in the electronics market. Keep a close eye on this relationship in the future. I expect Apple to build data centers and other resources in the country, if they don’t have such things already.