The Alliance of Digital India Foundation (ADIF) details monopolistic practices from Apple and Google app stores in a new study. The report, Towards Regulating App Stores, from ADIF and The Quantum Hub, mentions global regulatory actions targeting both tech giants control over the mobile app ecosystem.
According to the study, both Apple and Google charge significant fees for app store services. Additionally, Google is soon prohibiting developers from taking any outside method of payments from customers, hence earning a commission. Indian developers have objected and called Google’s policies unreasonable.
The monopolistic policies of the app stores and their abuse of market power are forcing unfavourable terms on developers, who are left with no choice but to comply.
Apple and Google app stores are scrutinized
Regulators worldwide have their stated concerns regarding the policies of Apple and Google app stores. Presently, Apple is under investigation in the US, Europe, Japan, Australia, and India. Google is also facing proceedings in the US, Europe, and India. Additionally, the Competition Commision of India (CCI) is probing Apple and Google for abuse of market power.
The study scrutinizes policies from the world’s dominating app stores, the effects on the mobile app market, and antitrust regulation. Because of Apple and Google’s market power, the study cites an ‘urgent need’ for fair competition among app stores. This idea of fair competition will also better the choices for developers and consumers; the monopoly over the mobile app ecosystem ignores India’s competition laws and has a harmful impact on its startup ecosystem.
The dominant position enjoyed by the gatekeepers of the app ecosystem can severely hurt competition and innovation in the market, while also adversely affecting the ecosystem in many ways. It’s thus commendable that legislators are taking notice of such issues and actively taking steps to address the anti-competition practices of big players. The need of the hour is a balanced approach.
Sijo Kuruvilla George, Executive Director, ADIF
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