New study shows monopolistic practices of Apple and Google app stores, claims ‘abuse of market power’
The Alliance of Digital India Foundation details the monopolistic practices of Apple and Google app store in a new report . The report Towards Regulating Mobile App Stores , by The Quantum Hub and ADIF, discusses the global regulatory actions that both tech companies have taken to control the app ecosystem.
According the study , both Apple & Google have significant app store fees. Additionally, Google is soon prohibiting developers from taking any outside method of payments from customers, hence earning a commission. Indian developers objected to the policies of Google and called them unreasonable.
Developers are forced to agree to unfavorable terms by the app store monopolists and their misuse of market power.
Apple and Google app stores are scrutinized
Regulators around the world have expressed concerns about Apple’s policies and Google’s app store. Presently, Apple is under investigation in the US, Europe, Japan, Australia, and India. Google faces similar proceedings in India, Europe and the USA. The Competition Commision in India (CCI), is also probing Apple, Google and other market players for abuses of power.
The study scrutinizes policies from the world’s dominating app stores, the effects on the mobile app market, and antitrust regulation. The study points out the ‘urgent necessity’ of fair competition between app stores due to Apple’s and Google’s dominant market position. 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 market position held by gatekeepers in an app ecosystem can seriously hamper competition and innovation, as well as adversely impact the ecosystem in many other 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. A balanced approach is the best solution.
Sijo Kuruvilla George, Executive Director, ADIF