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India watchdog orders rare recall of Apple antitrust reports

The move will prolong an already delayed investigation, which began in 2021, centering 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 per cent

Published: Tue 13 Aug 2024, 5:36 PM

  • By
  • Aditya Kalra

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India's antitrust body has taken the unusual step of recalling two reports that detailed alleged breaches of competition law by Apple, which complained that the regulator had disclosed commercial secrets to competitors including Tinder-owner Match.

The move will prolong an already delayed investigation, which began in 2021, centering 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 per cent.

Apple has already been subject to antitrust probes and orders in Europe, Japan and Korea, as well as lawsuits from corporate rivals. It has denied all wrongdoing.

Reuters reported last month that two reports prepared by India's antitrust investigations unit in 2022 and 2024 and circulated to concerned parties in July found Apple had exploited its dominant position in the market for app stores on its iOS operating system, to the detriment of app developers, users and other payment processors.

However, in an August 7 confidential order that Reuters is the first to report on, the Competition Commission of India (CCI) asked all Apple's opponents in the case for the return of the reports.

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

The order follows Apple's private complaint 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.

The order did not say what information Apple was concerned about. A source with direct knowledge of the matter pointed to disclosures related to revenue generated by Apple's India app store and figures on market share.

Apple says it is a small player in India, where phones using Google's Android system are dominant.

Among those now being asked for the return of the reports are Match and 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, said the recall highlighted the importance of protecting commercial secrets while ensuring investigations are thorough and impartial.

"Indian startups deserve a fair playing field, free from the constraints imposed by dominant global players," he added,

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

"We are looking at two to three months of delay, easily," said one of the lawyers who spoke on condition of anonymity.

Following responses to the reports by the concerned parties, the CCI typically would have ruled on fines or any required change in Apple's business practices.

Apple's iOS powered about 3.5 per cent 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. — Reuters



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