India's antitrust regulator has made an uncommon move by recalling two reports that outlined alleged violations of competition law by Apple. Apple had previously complained that the regulator had exposed commercial secrets to rivals such as Tinder's parent company, Match. This action will extend an investigation that has already been delayed, which started in 2021 and focuses on Apple's alleged misuse of its dominant position in the app market to compel developers to utilize its in-app purchase system, which charges up to a 30 percent fee. Apple has faced antitrust investigations and orders in Europe, Japan, and Korea, as well as legal challenges from business competitors. The company has consistently denied any misconduct.
Reuters reported last month that the two reports, prepared by India's antitrust investigation unit in 2022 and 2024 and distributed to relevant parties in July, concluded that Apple had leveraged its dominant position in the market for app stores on its iOS operating system, harming app developers, users, and other payment processors. However, in a confidential order dated August 7, which Reuters was the first to report, the Competition Commission of India (CCI) requested all Apple's adversaries in the case to return the reports. "It is crucial that such information remains confidential, preventing any unauthorized disclosure," the CCI stated in a four-page order signed by its top four officials. This order came after Apple privately complained to the CCI that the versions of the reports shared with parties revealed "Apple's confidential commercial sensitive information," urging the watchdog to "recall and withdraw" them, according to the order. The order did not specify what information Apple was concerned about. A source with direct knowledge of the matter mentioned disclosures related to revenue from Apple's India app store and market share figures.
Apple claims it is a minor player in India, where Google's Android system dominates. Among those now asked to return the reports are Match and the Indian startup group ADIF, which represents financial giant Paytm and other companies. Apple and Match declined to comment. The CCI did not respond to requests for comment. Prateek Jain, an associate director of ADIF, highlighted the importance of safeguarding commercial secrets while ensuring thorough and impartial investigations. "Indian startups deserve a fair playing field, free from the constraints imposed by dominant global players," he added. Such a recall of reports is unusual and will necessitate revisions by redacting confidential information, according to three Indian lawyers familiar with the CCI process and a government source with direct knowledge. "We are looking at a delay of two to three months, easily," said one of the lawyers who spoke on condition of anonymity. Following responses to the reports by the concerned parties, the CCI would typically rule on fines or any necessary changes in Apple's business practices. Apple's iOS powered about 3.5 percent of India's 690 million smartphones by mid-2024, with the rest using Android, according to Counterpoint Research, which also noted that Apple's domestic smartphone base has grown fivefold in the same number of years.
