India’s Apple probe paused following recall of antitrust reports

The recall, aimed at maintaining confidentiality, could delay the investigation by two to three months.
Apple is nearing its first US retail employee union agreement.

India’s antitrust body has ordered the recall of investigation reports that accused Apple of breaching competition laws, following complaints from the US tech giant about disclosing its commercial secrets. The case, which began in 2021, alleges that Apple abused its dominant position in the app market by forcing developers to use its proprietary in-app purchase system, charging up to 30% in fees.

The Competition Commission of India (CCI) issued a confidential order on 7 August, requiring all parties involved in the case to return the reports. The CCI emphasised the need to maintain the confidentiality of sensitive information to prevent unauthorised disclosures. Although the order did not specify what information Apple was concerned about, a source indicated that Apple was worried about disclosing revenue figures from its India app store and its market share.

The reports from the CCI’s antitrust investigations unit in 2022 and 2024 concluded that Apple had exploited its dominant position in the iOS app store market. The recall of these reports, now involving revisions to remove confidential information, will affect other parties, such as Match Group and the Indian startup group ADIF, which includes financial giant Paytm.

Why does it matter?

The CCI’s decision to recall the reports follows a private complaint by Apple, who argued that versions shared with parties contained its confidential business information. The recall is rare and is expected to delay the proceedings by two to three months, according to lawyers familiar with the CCI’s processes.

Globally, Apple is under scrutiny for its market practices. In June, European Union antitrust regulators accused Apple of violating tech rules, potentially leading to substantial fines. Apple also faces an inquiry regarding new fees imposed on app developers. Despite these allegations, Apple maintains that it is a minor player in India’s smartphone market, where Google’s Android system dominates. By mid-2024, iOS powered just 3.5% of India’s 690 million smartphones, although Apple’s presence in the country has grown significantly over the past five years.