The Alliance for Digital India Foundation (ADIF) details the monopolistic practices of Apple and Google’s app stores in a new study. ADIF and The Quantum Hub’s “Towards App Store Regulation” report mentions global regulatory action aimed at controlling the mobile app ecosystem by both tech giants.
According to the study, both Apple and Google charge significant fees for app store services. In addition, soon Google will prohibit developers from accepting any external payment methods from customers, thereby receiving a commission. Indian developers objected and called Google’s policy unreasonable.
App stores’ monopolistic policies and their abuse of market power impose disadvantageous conditions on developers, who are left with no choice but to comply.
Apple and Google app stores come under scrutiny
Regulators around the world are raising concerns about the policies of the Apple and Google app stores. Apple is currently under investigation in the US, Europe, Japan, Australia and India. Google is also facing litigation in the US, Europe and India. In addition, the Competition Commission of India (CCI) is investigating Apple and Google for abuse of market power.
The study carefully examines the policies of the world’s leading app stores, the impact on the mobile app market, and antitrust regulation. Because of the bargaining power of Apple and Google, the study notes an “urgent need” for fair competition between app stores. This idea of fair competition will also improve choice for developers and consumers; a monopoly on the mobile app ecosystem flouts India’s competition laws and has a detrimental effect on the startup ecosystem.
The dominance of app ecosystem gatekeepers can seriously damage competition and innovation in the marketplace, and negatively affect the ecosystem in many ways. Thus, it is commendable that lawmakers are paying attention to such issues and actively taking action to combat the anti-competitive practices of major players. The need of the hour is a balanced approach.
Sijo Kuruvilla George, Executive Director of ADIF