The competition regulator is waiting for the appointment of a full-time chairperson before it can act on the investigation into tech giant Apple. According to sources, while the probe into allegations of misuse of dominant position with regard to Apple’s billing policies and App Store is complete, the Competition Commission of India (CCI) cannot take it forward due to lack of quorum.
“The investigation into Apple has been completed. It will be taken up as soon as the CCI chairperson is appointed,” said the source, adding that the report is still confidential and has not been shared with the regulator.
While the findings are likely to be on the lines of the Google investigation by CCI, sources pointed out that Apple is a much smaller player compared to Android, and it operates in its own exclusive ecosystem. “Apple software of iOS works only on iPhones and is not dominant in the overall mobile phone ecosystem. It is still a very small player,” noted the source.
While Android is an open-source mobile operating system installed by original equipment manufacturers (OEMs) of smartphones and tablets, iOS is a closed operating system that is specifically designed by Apple for its iPhones and iPads.
In October last year, the CCI had imposed two penalties on Google of Rs 1,337.76 crore and `936.44 crore for abuse of its dominant position with respect to Android mobile devices and its Play Store policies. The National Company Law Appellate Tribunal (NCLAT) on March 30 upheld the Rs 1,337.76 penalty on Google, but provided substantial relief to the tech giant by way of modifying four key clauses of the antitrust regulator’s order.
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On December 31, 2021, the CCI had directed a probe into Apple by the director general after a complaint by an NGO Together We Fight Society. It had alleged that Apple uses a number of anti-competitive restraints and abuse of dominant practices in markets for the distribution of applications (‘apps’) to users of smartphones and tablets, and processing of consumers’ payments for digital content used within iOS mobile apps.
The CCI currently has only two members, and the position of chairperson has been vacant since its previous chief, Ashok Kumar Gupta, retired on October 25, 2022. Since then, CCI member Sangeeta Verma has been working as acting chairperson. The lack of quorum has, however, impacted other functions of the CCI as well, and earlier this year, it began clearing merger applications under the doctrine of necessity.
It is believed that a high-level panel conducted the interviewing and selection procedure for the position of CCI chairwoman. The government had issued an invitation for applications for the position, and over thirty people responded.