EXCLUSIVE owner of Tinder Match bolsters antitrust pressure on Apple in India with new case
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NEW DELHI, Aug 24 (Reuters) – The owner of Tinder Match Group (MTCH.O) has filed an antitrust complaint against Apple (AAPL.O) with India’s competition regulator, accusing it of “monopoly conduct” that forces developers to pay high commissions for in-app purchases, according to a legal filing seen by Reuters.
Apple fends off a series of antitrust challenges around the world and Match’s filing in July adds to two other cases in India, although Match is the first foreign company to mount such a challenge against the iPhone maker in the country. . Read more
Apple and India’s Competition Commission (ICC) did not respond to questions from Reuters, while a spokesperson for Match declined to comment on its filing.
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In the previously unreported Indian filing, Match claims that Apple’s conduct restricts the innovation and development of app developers who offer digital services by mandating the use of its proprietary in-app purchase system and a “excessive” commission of 30%.
A similar dispute in the Netherlands resulted in a €50 million fine for Apple and an agreement allowing different payment methods in Dutch dating apps. Read more
The American giant has long imposed the use of its integrated payment system, which charges commissions that some developers like Match have deemed too high overall.
Match argues in its India filing that users in other countries often prefer to use payment methods that Apple does not allow, and that in India a state-backed online transfer system was preferred.
“Apple is therefore leveraging its dominant position in the iOS App Store market to promote the exclusive use of its own payment solution,” Mark Buse, head of global government relations for Match, said in the filing.
In India, the ICC began investigating claims by a local non-profit group in December that Apple’s in-app purchase system harms competition by raising costs for app developers and consumers. customers, while acting as a barrier to market entry. Read more
The watchdog ordered the investigation after Apple denied any wrongdoing, saying it was not the dominant player in India where it had an “insignificant” market share of 0-5%, arguing that it was Google’s Android that had a 90-100% share. Read more
The investigation will now focus on each of the three separate cases that have been filed against Apple, according to three sources with knowledge of the proceedings.
Match’s Tinder is one of the most popular dating apps in India and accounted for around 51% of consumer spending across the top five dating apps during the second quarter of this year, according to data from Sensor Tower.
In recent years, Apple has relaxed some restrictions for developers around the world, such as allowing them to use communications – such as email – to share information about payment alternatives outside of their iOS app and reducing commissions. for small developers at 15%.
“This commission rate does not apply to apps from Match’s portfolio brands,” Match’s filing reads.
Apple claims that in India, 87% of apps in its App Store are those that pay no commission.
Match also complained that Apple views ride-hailing apps in India such as SoftBank-backed Uber and Ola as those providing “physical goods/services”, allowing them to provide alternative payment solutions, even if they perform “a similar matchmaking function” as a dating app.
“Dating and ridesharing apps share the same fundamental goal of matching two people online to meet in the real world…Apple has arbitrarily declared the two to be different,” Match said.
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Reporting by Aditya Kalra in New Delhi; Additional reporting by Munsif Vengatill; Editing by Elaine Hardcastle
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