Apple faces escalating India antitrust pressure as regulator rejects bid to pause probe

Apple Inc. is under increasing scrutiny from India’s antitrust authority after the Competition Commission of India (CCI) dismissed the company's attempt to pause an ongoing investigation into its App Store practices. This decision comes as the regulator cited Apple's alleged efforts to delay the probe, which has been active since 2022. The CCI's confidential order, reported by Reuters, highlights concerns that Apple has repeatedly sought extensions, which the authority claims disrupts procedural integrity and delays the resolution of the case. Central to the investigation is a 2024 report that found Apple guilty of 'abusive conduct' due to its App Store policies, including a mandatory 30% commission charged to developers and the requirement for apps to utilize Apple’s in-app payment system. The CCI has requested that Apple provide objections to the investigation's findings and submit financial information necessary for evaluating potential penalties. However, Apple has refrained from doing so, reportedly due to apprehensions that India’s revised competition laws might expose the company to fines as high as $38 billion. Under the Competition Amendment Act of 2023, the CCI can impose penalties based on a company's global revenue, rather than just its earnings within India. Apple is currently contesting this provision in the Delhi High Court, arguing that any fines should be calculated based on its revenues in India, given that the alleged infractions occurred in the country. The regulator's refusal to grant Apple’s request for a freeze on the investigation indicates a commitment to uphold procedural timelines. According to the confidential order, the CCI stated, 'The Commission is of the considered view that repeated extensions, despite unambiguous directions, undermine procedural discipline and impede the timely conclusion of proceedings.' Industry experts suggest that Apple's legal maneuvers are not uncommon. Shiv Putcha, Director of Research and Consulting at GSMA Intelligence, noted that delaying hearings is a typical strategy in such legal battles. He stated, 'If they (Apple) get a favorable ruling, then it undercuts CCI’s ruling and that’s probably the angle of the CCI.' The CCI has now imposed a one-week deadline for Apple to respond and provide the requested financial information, warning that it may proceed with a final ruling based on existing evidence if the company fails to comply. This legal battle was initiated by complaints from Match Group, the parent company of Tinder, along with several Indian startups, who argue that Apple’s App Store policies create an uneven playing field by enforcing its commission structures and preventing third-party app stores. While Apple denies any wrongdoing, CCI investigators have previously characterized the App Store as an 'unavoidable trading partner,' claiming that Apple's dominance in the iOS ecosystem limits developers' options. The outcome of this case is being closely monitored within India’s tech landscape, where regulators are increasingly focused on curbing the influence of major tech companies. Putcha remarked that there is a clear desire for 'homegrown' Indian champions in the market, emphasizing the importance of a level playing field for local businesses to thrive. The next hearing in the Delhi High Court is scheduled for January 27.