India’s Antitrust Body Recalls Key Reports in Apple Probe, Delaying Investigation

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India’s antitrust authority, the Competition Commission of India (CCI), has taken the unprecedented step of recalling two critical reports that detailed alleged violations of competition laws by tech giant Apple. This decision follows complaints from Apple, which argued that the regulator had improperly disclosed sensitive commercial information to its competitors, including Match Group, the owner of Tinder.

The investigation, which began in 2021, focuses on accusations that Apple abused its dominant position in the app market by forcing developers to use its proprietary in-app purchase system, which charges a commission of up to 30%. This case has already faced significant delays, and the recall of these reports is expected to further prolong the proceedings.

Apple, which has consistently denied any wrongdoing, is no stranger to antitrust scrutiny. The company has been subjected to similar investigations and legal actions in Europe, Japan, Korea, and other regions. However, this particular case in India has taken a unique turn with the CCI’s decision to retract its reports, which were prepared by its investigations unit in 2022 and 2024 and shared with involved parties in July 2024.

According to a confidential order issued by the CCI on August 7, the commission has requested that all parties involved in the case return the circulated reports. The CCI emphasized the importance of maintaining the confidentiality of sensitive information, stating, “It is imperative that such information be maintained confidential, ensuring that no unauthorized disclosure occurs.”

This move by the CCI came in response to a private complaint from Apple, in which the company expressed concern that the reports contained “confidential commercial sensitive information” that was shared with other parties in the case. Although the order did not specify the exact nature of the information Apple was concerned about, a source familiar with the matter indicated that it likely involved details about revenue generated by Apple’s App Store in India and market share statistics.

Apple has argued that it is a relatively small player in the Indian market, where Google’s Android operating system dominates the landscape. As of mid-2024, Apple’s iOS powered only about 3.5% of India’s 690 million smartphones, according to data from Counterpoint Research. Despite this, the company’s presence in the country has grown significantly, with its smartphone base expanding fivefold over the past five years.

The recall of the reports has impacted not only Apple but also other parties involved in the case, including Match Group and the Alliance of Digital India Foundation (ADIF), a startup group that represents major companies like Paytm. Both Apple and Match Group declined to comment on the matter, and the CCI has not responded to requests for comment.

Prateek Jain, an associate director at ADIF, highlighted the importance of balancing the protection of commercial secrets with the need for thorough and impartial investigations. “Indian startups deserve a fair playing field, free from the constraints imposed by dominant global players,” he stated.

Legal experts familiar with the CCI’s processes noted that such a recall of reports is rare and will likely require the redaction of the confidential information identified by Apple. This revision process could lead to further delays, with some estimating an additional two to three months before the investigation can proceed.

Once the reports are revised and reissued, the CCI will seek responses from the concerned parties before making a final ruling on potential fines or any required changes to Apple’s business practices in India.

The delay in this investigation is significant, as it extends the timeline for resolving an issue that could have major implications for the app market in India. As Apple continues to expand its presence in the country, the outcome of this case will be closely watched by industry stakeholders and consumers alike.