India’s antitrust body has concluded its investigation into Apple Inc., revealing findings that suggest Apple abused its dominant position in the app market on its iOS operating system. According to a confidential report obtained by Reuters, the Competition Commission of India (CCI) has accused Apple of engaging in “abusive conduct and practices”.

Since 2021, the CCI has scrutinized Apple’s practices, particularly focusing on allegations that Apple forces developers to utilize its proprietary in-app purchase system. Apple, however, has denied any wrongdoing, arguing that its presence in India, where Android phones dominate, is minimal.

The CCI’s investigative unit, as outlined in a 142-page report seen by Reuters, emphasized Apple’s significant influence over digital product and service distribution through its iOS platform and App Store. The report stated that Apple’s App Store is essentially unavoidable for app developers, who are compelled to comply with what the CCI deems as Apple’s unfair terms, including mandatory use of its billing and payment system.

Both Apple and the CCI declined to comment on the report when approached by Reuters.

This development in India comes amid heightened global scrutiny of Apple’s practices. In June, European Union regulators found Apple in breach of tech rules, potentially leading to substantial fines. The company also faces scrutiny over new fees imposed on app developers.

Responding to new EU regulations, Apple recently announced plans to allow software developers to distribute apps to EU users outside of its own App Store framework.

The CCI’s report marks a critical phase in the Indian investigation, now set to be reviewed by senior officials within the watchdog. Apple and other concerned parties will have the opportunity to respond before a final decision is made, which could include monetary fines and directives to change business practices.

The case in India was initially brought forth by a non-profit group, “Together We Fight Society”, followed by similar filings from Indian startups, the Alliance of Digital India Foundation, and Match Group, owner of Tinder. These cases collectively challenged Apple’s in-app fees, alleging they unfairly raise costs for developers and consumers, thereby stifling competition.

According to the CCI report, Apple’s restrictive policies extend to not allowing third-party payment processors for in-app purchases and prohibiting external links directing users to alternative purchase mechanisms, potentially violating Indian competition laws.

While Apple maintains its smartphone market share in India is negligible at 0-5%, with Android holding a dominant 90-100%, the CCI argues that Apple’s exclusive control over its iOS App Store limits competition and harms app developers and users alike.

The report also highlighted inputs from major companies like Microsoft, Uber, and Amazon during the investigation, illustrating broader industry concerns regarding Apple’s market practices.

In its defense, Apple contends that its in-app payment system enhances the security and integrity of its App Store. However, the CCI remains firm in its stance that Apple’s policies adversely affect app developers, users, and other payment processors.

The CCI’s scrutiny extends beyond Apple, having previously fined Google $113 million for similar in-app payment practices and mandating the allowance of third-party billing options, a decision currently under challenge by Google.