Indian Regulator Recalls Competition Probe Reports on Apple

An Indian regulator has been forced to undertake a rare recall of reports of an investigation that said US tech giant Apple breached local competition laws.

The unusual move came after Apple complained that its commercial secrets had been revealed to commercial rivals, such as Tinder-owner Match.

The move will prolong a procedure, begun in 2021 and already marred by delays, that centres on Apple’s alleged abuse of its dominant position in the apps market to force developers to use its proprietary in-app purchase system, at a fee of up to 30%.

ALSO SEE: China Says HK Ship Destroyed Baltic Gas Pipeline by Accident

In a confidential order last Wednesday (August 7), the Competition Commission of India (CCI) asked all Apple’s opponents in the case to return of their reports.

“It is imperative that such information be maintained confidential, ensuring that no unauthorised disclosure occurs,” the anti-trust watchdog said in a four-page order signed by its top four officials.

The order did not say what confidential information Apple was concerned about.

Concern on App Store revenue being disclosed

However, a source with direct knowledge of the matter said Apple was concerned about disclosures related to revenue of its India app store and figures on market share.

In July, Reuters revealed that two reports by investigators for the competition body in 2022 and 2024 found Apple had exploited its dominant position in the market for app stores on its iOS operating system.

Among those now asked to return of the reports are Match and Indian startup group ADIF, which represents financial giant Paytm.

The order follows a private complaint by Apple to the CCI that versions of reports shared with parties disclosed “Apple’s confidential commercial sensitive information” adding that the watchdog must “recall and withdraw” them, the order showed.

Apple and Match declined to comment. The CCI and the Indian startup group ADIF, did not respond to requests for comment.

Such a recall of reports once distributed is rare and will require them to be revised by the redaction of information deemed confidential, according to three Indian lawyers familiar with the CCI process and a government source with direct knowledge.

“This is very unheard of … We are looking at two to three months of delay, easily,” one of the lawyers, who spoke on condition of anonymity, said.

The CCI reports on Apple – one from 2022 and another earlier this year – were the most critical stage of the Indian investigation.

Following the response of parties, the CCI typically would have ruled on fines or any change in business practices at Apple, if needed.

EU also says Apple breached tech rules

But the reality is Apple faces anti-competition legal challenges across the globe.

In June, European Union anti-trust regulators said it breached the bloc’s tech rules, which could cost the iPhone maker a hefty fine. It also faces an inquiry into new fees imposed on app developers.

CCI’s first report in the Apple case was drafted in 2022 but returned for further internal investigation, confidential legal papers show.

It has now been recalled with the latest 2024 report, which concluded that Apple engaged “in abusive conduct and practices” and its payment policy “adversely affects the app developers, users and other payment processors”.

Apple has denied wrongdoing, saying it was a small player in India, where phones using Google’s Android system are dominant.

Apple’s iOS powered about 3.5% of India’s 690 million smartphones by mid-2024, with the rest using Android, says Counterpoint Research, which adds however that Apple’s domestic smartphone base has become five times larger in as many years.