India’s antitrust body orders recall of Apple products

Alex Omenye
Alex Omenye

India’s Competition Commission has unexpectedly ordered the recall of investigation reports that concluded Apple had violated competition laws.

This action comes after Apple alleged that its commercial secrets were disclosed to its competitors, including Match Group, the owner of Tinder.

The investigation, which began in 2021, focuses on Apple’s alleged misuse of its dominant position in the app market by requiring developers to use its proprietary in-app purchase system, which charges up to 30%. The recall will extend the procedure, which has already experienced significant delays.

On August 7, the CCI issued a confidential order requesting all parties involved in the case to return the reports. The four-page directive, signed by the commission’s top officials, emphasized the need to maintain confidentiality and prevent unauthorized disclosures. While the order did not specify the exact nature of the confidential information, sources indicate that Apple is concerned about leaks related to its app store revenue and market share data.

The recall affects various parties, including Match Group and the Indian startup association ADIF, which represents companies like Paytm. This move follows Apple’s private complaint to the CCI, which alleged that confidential commercial information was improperly shared.

Both Apple and Match Group declined to comment, while the CCI and ADIF have yet to respond to requests for information.

Such a recall of distributed reports is unusual and is expected to result in a delay of two to three months as the reports are revised to redact sensitive information. This delay impacts the investigation’s progress, which is at a critical juncture. The CCI’s reports are essential for determining any potential fines or changes to Apple’s business practices.

Apple, facing antitrust scrutiny worldwide, recently encountered regulatory challenges in the European Union and is also under investigation for new fees imposed on app developers.

In India, Apple’s market presence remains relatively small, with iOS devices accounting for approximately 3.5% of the country’s 690 million smartphones as of mid-2024, according to Counterpoint Research. Despite this, Apple’s market share has seen substantial growth over the past five years.


TAGGED:
Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *