CCI unusually withdraws all reports related to antitrust investigation into Apple
India’s competition authority has ordered an unusual recall of reports on an investigation that found Apple violated antitrust rules after the US giant complained that its commercial secrets had been exposed to rivals including Tinder owner Match.
The move extends a process that began in 2021 and has already been plagued by delays. The process centers on Apple’s alleged abuse of its dominant position in the app market to force developers to use its own in-app purchase system, at a fee of up to 30 percent.
In a confidential order dated August 7, first reported by Reuters, the antimonopoly authority ordered all of Apple’s opponents in the case to return the reports.
“It is imperative that such information remains confidential so that there is no unauthorised disclosure,” the regulator, the Competition Commission of India (CCI), said in a four-page order signed by its four top officials.
The ruling did not specify what confidential information Apple was concerned about.
However, a source with direct knowledge of the matter said Apple is concerned about disclosures related to its app store revenue in India and market share figures.
In July, Reuters reported that two antitrust investigation reports from 2022 and 2024 found that Apple had abused its dominant position in the app store market for its iOS operating system.
Among the parties now being asked to return the reports are Match and Indian startup group ADIF, which represents financial giant Paytm.
The decision follows Apple’s private complaint to the CCI, which said versions of reports shared with parties revealed “Apple’s confidential commercially sensitive information”. The decision says the watchdog must “recall and withdraw” them.
Apple and Match declined to comment. The CCI and Indian startup group ADIF did not respond to requests for comment.
It is rare for reports that have already been distributed to be recalled, and the confidential information must be removed, according to three Indian lawyers familiar with the CCI process and a government source with direct knowledge.
“This is very unheard of… We can easily expect a delay of two to three months,” said one of the lawyers, who wished to remain anonymous.
The CCI reports on Apple — one in 2022 and one in 2024 — were the most crucial phase of the Indian investigation.
Following the parties’ response, the CCI would normally have ruled on fines or, if necessary, changes to Apple’s business practices.
Apple is facing antitrust attacks around the world. In June, European Union antitrust regulators said it had violated the bloc’s tech rules, potentially costing the iPhone maker a hefty fine. The company is also facing an investigation into new fees imposed on app developers.
CCI’s initial report into the Apple case was filed in 2022 but was sent back for further internal investigation, confidential legal documents show.
It has now been recalled with the latest report from 2024, which concluded that Apple engaged in “abusive practices” and that its payments policies “negatively impact app developers, users, and other payment processors”.
Apple denies any wrongdoing and says it is a small player in India, where phones running Google’s Android system are dominant.
Counterpoint Research reports that by mid-2024, about 3.5 percent of India’s 690 million smartphones will run on iOS. The rest will run on Android. However, the research also reports that the number of smartphones in India will have grown five-fold over the same period.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
