Apple is facing a no-confidence challenge in India for abusing its dominance in the app market by forcing developers to use its proprietary in-app purchasing system, according to sources and documents.
Sources and documents seen by Business Insider Australia Apple has pushed the Android-only messaging app Hike to the detriment of other developers to use in-app payments through its iTunes App Store.
The document appears to be evidence produced by the Competition Commission of India (ICC), which is investigating the public interest over whether Apple Pay's in-app payment system is unfairly harming other developers.
This case may be the first in the world to investigate whether an operating system manufacturer has misused its market. The ICC inquiry is expected to last about four months and is expected to be completed by the end
Hike, the messaging app for Android, claimed in a response to the commission that Apple Paul was "misusing its marketplace to prevent innovation by other developers." The company has not yet filed a formal complaint.
The commission ordered Hike to file a response and gave the company a 15-page questionnaire. Hike submitted a response on July 12, the same day Hike and the Apple Paul App Store team were emailed.
Documents reveal that Hike's revenue share is about 0.2%, while other iOS messaging apps such as WhatsApp, WhatsApp Direct and Facebook Messenger offer more profitable revenue share - ranging from 0.5% to 3%.
The response also states that Hike made in-app purchases of 40,000 over a six-month period between April and September 2015.
But Apple rejected Hayek's request for a commission to investigate Apple's behavior on the grounds that Hayek does not regulate in-app purchases.
"There have been no complaints on this issue. Further, the company has not expressed any such concern to the Commission. For example, any issues related to in-app purchase policies in the app are on the use of in-app purchases. Cannot be raised by the company and any other organization." The source said.
On February 2, , Apple first denied the Hike because the company said it was trying to sell more than one virtual currency in the app. The app was launched in September.
The following month, Hike received another rejection, as Apple Paul said the app tried to bypass in-app purchases. The app was released again in September.
However, Apple rejected Hike on February 15, for unspecified reasons, saying Hike's app "presents a number of ways to trick the system." The company did not elaborate on the issue in its denial message.
The Hike app was finally approved on March 25, despite repeated denials.
Apple has since tightened the rules for in-app purchases. In February 2015, Apple Pay began to allow users to withdraw purchases in the short term. He expanded the policy for all new purchases in April .
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