India's antitrust probe may expose Apple's app store secrets
What's the story
The Competition Commission of India (CCI) has denied Apple's request to stay an investigation report that alleges the tech giant violated competition laws. The decision, announced on Monday, allows the 2021 case to proceed despite Apple's apprehensions of commercial secrets being exposed to rivals. The case is one of the many legal challenges Apple faces in India over its app store dominance.
Information leak
Apple's concerns over disclosure of commercial secrets
Apple's first objection stemmed from the CCI's investigation reports, which reportedly disclosed sensitive commercial information to other parties, including competitors such as Match Group, the parent company of Tinder. Addressing this concern, the CCI recalled original reports in August and directed all parties concerned to return them and destroy any copies. Revised versions of these reports were then issued for further investigation.
Non-compliance allegations
Apple accuses TWFS of non-compliance with CCI directives
In November, Apple leveled fresh accusations against the main complainant, Indian non-profit Together We Fight Society (TWFS). The tech giant alleged that TWFS had not verified the destruction of original reports and could use them for malicious purposes. As a result, Apple requested the CCI to take action against TWFS and withhold the revised investigation report. However, these pleas were rejected by the regulator as "untenable," allowing the investigation to proceed.
Antitrust allegations
CCI accuses Apple of exploiting its dominant position
The CCI's investigation claims that Apple has abused its dominant position in the iOS app store market to the detriment of app developers, users, and alternative payment processors. Although Apple denied the allegations, pointing to its relatively minor role in India's Android-dominated smartphone market, the regulator has found otherwise. The ongoing case could result in heavy monetary penalties for Apple.
Financial disclosure
CCI directs Apple to submit audited financial statements
The CCI has also directed Apple to submit audited financial statements for the fiscal years 2021-22, 2022-23, and 2023-24. These financial disclosures will help the CCI determine potential fines for the alleged antitrust violations. Now that Apple's objections have been overruled, senior officials at the CCI will review the revised investigation report and make a final ruling on this case.