In Short:
India’s antitrust body has called for the return of reports revealing Apple’s alleged competition law violations after Apple claimed confidential information was shared. This investigation, starting in 2021, focuses on Apple’s in-app purchase fees. The recall will delay proceedings by two to three months, impacting potential fines or changes to Apple’s practices. Apple denies wrongdoing, claiming a small market share in India.
India’s antitrust authority has initiated a rare recall of investigation reports that concluded Apple violated competition regulations. This decision follows a complaint from the tech giant, which raised concerns about the possible unauthorized disclosure of sensitive commercial information to its competitors, notably Match, the owner of Tinder.
Prolonged Investigation Process
The action will extend a procedural timeline that commenced in 2021, a process already plagued by delays. The investigation focuses on allegations that Apple has abused its dominant market position in the app sector by compelling developers to utilize its proprietary in-app purchase system, charging fees that can reach as high as 30 percent.
Confidentiality Concerns
In a confidential directive issued on August 7, which was first reported by Reuters, the Competition Commission of India (CCI) instructed all parties involved in the case to return the reports in question. The CCI emphasized the necessity of maintaining the confidentiality of such information to prevent any unauthorized disclosures.
While the directive lacked specifics on the nature of the confidential data Apple found concerning, a source familiar with the situation indicated that concerns primarily pertained to revenue generated from the Apple app store in India and market share statistics.
Findings from Previous Reports
Reports from the antitrust investigations unit in 2022 and 2024 revealed that Apple had misused its preeminent market position for app stores operating on its iOS platform. The companies now required to return the reports include Match and the Indian startup group ADIF, which represents financial powerhouse Paytm.
Implications of the Recall
This order follows Apple‘s private complaint to the CCI regarding shared versions of the reports, which it claimed contained “confidential commercial sensitive information,” prompting the necessity for their recall. Legal experts suggest that the withdrawal of previously distributed reports is an unusual procedure that will entail significant revisions to redact confidential information. Estimates indicate this could lead to a delay of two to three months.
Ongoing Global Antitrust Challenges
The CCI reports, especially the one from 2024, were critical to the Indian investigation, which could have resulted in penalties or alterations in Apple‘s business practices. Apple is also facing antitrust scrutiny worldwide; in June, European Union regulators announced Apple breached the bloc’s tech regulations, potentially resulting in substantial fines.
The initial CCI report concerning Apple was drafted in 2022 but remained under internal examination, as indicated by confidential legal paperwork. The latest recall encompasses both the 2022 and 2024 reports, which have concluded that Apple engaged in “abusive conduct and practices” that adversely impacted app developers, users, and other payment processors.
Apple has denied any wrongdoing, asserting its status as a minor player in India, where devices using Google’s Android system dominate the market. By mid-2024, Apple’s iOS powered approximately 3.5 percent of India’s 690 million smartphones, according to Counterpoint Research, which noted that Apple’s domestic smartphone user base has expanded fivefold over the past five years.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
