iPhone Maker Apple Comes Under CCI Scanner

[ravi_patent 28]

http://economictimes.indiatimes.com/tech/hardware/iphone-maker-apple-comes-under-cci-scanner/articleshow/8927346.cms

NEW DELHI: iPhone and iPad maker Apple Inc has come under the scanner of the Competition Commission of India for allegedly limiting the availability of its products to a few service providers using its dominant market position.

A customer has filed a complaint before the Commission under section 4 of the Competition Act 2002 that Apple is curbing the customer's choice by limiting the availability of iPhones and iPads in India to a limited number of service providers, besides its signature stores.

At present, iPhone's latest version is available in India through Aircel and Bharti airtel , while the iPads are sold through Apple store only.

An Apple official when contacted declined to comment. "The complainant has also alleged that a user can only download software from the i-store and the others are not recognised by the device," a senior CCI official told PTI.

Besides, Apple phones could only be serviced in Apple centres, which in turn charge high rates for servicing.

The Commission is due to take up the matter for consideration by the end of this week, sources said.

iPhone, the touch screen handset that acquired a cult status in the US and other western countries, was launched for the first time in India in 2008. Following the launch, the new upgrades have also been introduced in the Indian market.

Smartphones are cathcing up fast in the Indian market, especially at a time more companies roll out 3G services across the country. 3G services, which offer high-speed Internet access, have already been rolled out by various operators like Airtel, Vodafone and Aircel.

According to a CyberMedia Research study, about 12 million smartphones are expected to be sold in India during 2011.

The Commission, which became fully functional in 2009, with the appointment of a chairman and six members, has the power to check anti-competitive agreements and abuse of dominant position, drawn from Sections 3 and 4 of the Competition Act, 2002.

Beginning June 2011, the Commission also received powers to check high-voltage mergers and acquisitions, with the notification of section 5 and 6 of the Act.

[kshah 452]

If such aplications are admissible (I don't think it has any legal standing) than ideally one can sue each and every cdma device maker.

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[Karthik R 246]

Don't think CCI have got balls to mess with the cupertino based Apple.

[ravi_patent 28]

@kshah

may i know whether iphone is subsidized in india as operator locked cdma phones .to my understanding no.

ofcourse indian media is generally obsessed with brand loyalty than abuse of monopolies and publicity is the least we can expect.what happened in dhaval valia/vfone was because of media support

legal battles are won here not on merits.

cci is an opportunity for india to show

its well deserved place in global market as a huge market.whether india reliazes the same or not is the issue

Edited June 22, 2011 by ravi_patent

[kshah 452]

In market economy, I don't understand need of monopolies. Its at people's discrition t choose product / services / goods. People themselves make them monopoly o leader.

As a manufacturer they must own right to choose their customers.

Any ways that's my opinion but , this way even intel, MS must come under cci.

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Edited June 22, 2011 by kshah

[rajanmehta 4,056]

Fallacy to think that Market Economy will stop giant corporations from being "Monopolistic".. America is a shining example. Being a Capitalistic, market driven economy did not stop "Intel" to indulge for years in "Intel Inside" campaign where it was paying subsidies to all major PC/Laptop manufacturers to use Intel Processors. Only condition was that if they availed the subsidy, they can't use "AMD" Processors. They killed effective competition from AMD by this method for many years. Even though a consumer would have liked to go for an AMD system, the choices were not available only from major PC makers.

AMD filled a case under European, American Anti Competitive legislation. Went on for a few years. Finally Intel settled the case by paying a few Billion dollars to AMD. So now you are seeing AMD systems from all major PC manufacturers.

Microsoft too was sued when Internet Explorer was bundled together with Windows OS.

Competition Commission of India is a revamped version of earlier Monopolies & Restrictive Trade Practises Act. Now it has powers for mergers/acquisitions also where a monopoly could be created. Still it's not as tough/effective as European legislation.

[ravi_patent 28]

kshah

rajan has made my point more than clear.+1 for the reasoning.

Edited June 22, 2011 by ravi_patent

[city02 63]

apple is so arrogant that they will prefer to stop selling all apple products in india rather than comply with a single objection raised in the complaint.

some of the points for CCI are moot:

1. you can buy ipad unlocked from any apple store so its not tied to any particular operator

i think the same is true for iphones also

2. non-apple outlets like staples, jumbo, reliance etc are selling ipads now [at least in the top 4 metros]

but apple will never support flash or non-app store software or even allow music downloads in india

and they will charge a premium over singapore, HK, USA etc for unlocked / unsubsidised products

in fact india will remain the highest priced market for apple for the foreseeable future

the silver lining is that it will spawn a lot of android clones at affordable prices

and apple will continue to have negligible sales from here