In response to ongoing antitrust investigations in India, Apple has emphasized the substantial earnings of Indian developers on its App Store. According to a study by Professor Viswanath Pingali from the Indian Institute of Management Ahmedabad, developers in India earned approximately $5.31 billion from the App Store in 2024. Notably, over 94% of these earnings were generated without any commission paid to Apple.
Apple’s CEO, Tim Cook, commented on the findings, stating, The App Store has been an economic miracle for developers in India and all around the world, and we’re thrilled to support their work. This study underlines the power of India’s incredibly vibrant app economy. He further affirmed Apple’s commitment to investing in the success of developers of all sizes as they create impactful applications that enrich people’s lives.
The study categorizes the earnings into three segments:
– Digital Goods and Services: This includes app sales and in-app purchases, accounting for approximately 6% of the total earnings.
– Physical Goods and Services: Encompassing sectors like food delivery, grocery services, and ride-hailing, this segment represents about 88% of the earnings.
– In-App Advertising: Making up the remaining 7%, this category includes revenue from advertisements within apps.
Apple’s emphasis on these figures comes amid allegations from the Competition Commission of India (CCI) that the company has abused its dominant position in the app market. The CCI’s investigation, initiated in 2021, concluded that Apple imposed unfair terms on developers, including mandatory use of its proprietary billing system, which could lead to higher costs for developers and consumers. Apple has denied these allegations, asserting that its market share in India is relatively small compared to competitors.
The CCI’s findings have raised concerns about potential fines and directives for Apple to alter its business practices. The investigation also highlighted that Apple’s App Store is an unavoidable trading partner for app developers, compelling them to adhere to its terms.
In a related development, Apple successfully prevented companies like Match Group, the owner of Tinder, and a group of startups from accessing its commercially sensitive information related to the antitrust case. The CCI denied these companies’ requests, citing potential harm to Apple’s interests.
Furthermore, Apple has faced challenges regarding the disclosure of confidential information. The CCI ordered the recall of reports detailing alleged violations by Apple after the company complained about the improper disclosure of its commercial secrets. This decision has extended the investigation process.
As the situation unfolds, the tech industry is closely monitoring the outcomes of these antitrust proceedings, which could have significant implications for Apple’s operations in India and its relationships with developers.
