India orders unusual recall of reports on Apple antitrust probe

New Delhi: India's antitrust body has ordered an unusual recall of reports of an investigation that found Apple breached competition laws, after the US giant complained its commercial secrets were disclosed to opponents, including 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 per cent.

In an Aug 7 confidential order that Reuters was the first to report, the antitrust body has 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 watchdog, the CCI, said in a four-page order signed by its top four officials.

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

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 reported that two reports by the antitrust investigations unit 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 for the return of the reports are Match and Indian startup group ADIF, which represents financial giant Paytm.

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.

Apple and Match declined to comment. The watchdog, the Competition Commission of India, 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, said 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," said one of the lawyers who spoke on condition of anonymity.

The CCI reports on Apple - one from 2022 and another from 2024 - 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.

Apple faces antitrust heat across the globe. In June, European Union antitrust 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 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.