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PratapDarpan > Blog > Tech Hub > CCI recalls Apple investigation report after Apple claimed its secrets were leaked to rivals
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CCI recalls Apple investigation report after Apple claimed its secrets were leaked to rivals

PratapDarpan
Last updated: 13 August 2024 15:22
PratapDarpan
11 months ago
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CCI recalls Apple investigation report after Apple claimed its secrets were leaked to rivals
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CCI recalls Apple investigation report after Apple claimed its secrets were leaked to rivalsThe Competition Commission of India has withdrawn its report on its probe into Apple after Apple claimed its confidential data was leaked to competitors such as Tinder-maker Match, delaying the probe.

CCI recalls Apple investigation report after Apple claimed its secrets were leaked to rivals

The Competition Commission of India has withdrawn its report on its probe into Apple after Apple claimed its confidential data was leaked to competitors such as Tinder-maker Match, delaying the probe.

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CCI recalls Apple investigation report after Apple claimed its secrets were leaked to rivals
Government issues warning to Apple users in India

India’s anti-competition body has ordered the unusual withdrawal of a report of an investigation that found Apple violated competition laws, after the US giant complained that its commercial secrets were disclosed to rivals, including Tinder owner Match.

The move would prolong a process that began in 2021 and was already delayed, centered on Apple’s alleged abuse of its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system for a fee of up to 30 percent.

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In a confidential order issued on August 7, first reported by Reuters, the anti-competition body has asked all of Apple’s rivals in the case to turn over the reports.

“It is necessary that such information is kept confidential to prevent any unauthorised disclosure,” the Competition Commission of India (CCI) said in a four-page order signed by its top four officials.

The order did not specify what confidential information Apple is concerned about. However, a source with direct knowledge of the matter said Apple is concerned about disclosures related to its India App Store revenue and market share figures.

In July, Reuters reported that two reports from the antitrust investigation unit, due in 2022 and 2024, found that Apple had exploited its dominant position in the App Store market on its iOS operating system.

The companies that have now been asked to report back include Match and Indian startup group ADIF, which represents financial giant Paytm.

The order comes following a private complaint by Apple to the CCI, saying that versions of the report shared with parties disclosed “confidential commercially sensitive information of Apple”, and that the regulator should “withdraw” them, the order said.

Apple and Match declined to comment. The CCI and Indian startup group ADIF did not respond to requests for comment.

Three Indian lawyers familiar with the CCI process and a government source with direct knowledge said recalling reports once they have been distributed is rare and would require redacting information considered confidential.

“This is very unexpected… we could easily face a delay of two to three months,” said a lawyer who asked not to be named.

The CCI reports on Apple – one from 2022 and the other from 2024 – were the most important step in the Indian investigation.

Following the parties’ responses, the CCI may usually rule on imposing a penalty on Apple or any changes in business practices if necessary.

Apple faces antitrust scrutiny around the world. In June, the iPhone maker could face hefty fines after European Union antitrust regulators said it violated the bloc’s tech rules. It also faces scrutiny over new fees it imposes on app developers.

Confidential legal documents show that the CCI’s first report in the Apple case was prepared in 2022 but was returned for further internal investigation.

Now it has been recalled with the latest 2024 report concluding that Apple “engaged in abusive conduct and practices” and that its payments policies “adversely impact app developers, users, and other payment processors.”

Apple has denied any wrongdoing, saying it is a small company in India, where phones using Google’s Android system dominate.

Counterpoint Research says that by mid-2024, about 3.5 percent of India’s 690 million smartphones will be powered by Apple’s iOS, while the rest will be powered by Android. However, it also says that Apple’s domestic smartphone base has grown five times in the same number of years.

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