Apple's Request to Halt the Antitrust Investigation was Denied by CCI

Nitin Konde, Varun Bhardwaj

Nov 25, 2024 — 3 min read

Apple’s Request to Stop Antitrust Probe Denied by CCI

Apple's request to stop the investigation of a report that claimed the tech giant had broken Indian competition laws was denied by the Competition Commission of India (CCI). According to a media report, this permits the lawsuit, which has been being investigated since 2021, to proceed.

The investigation focusses on claims that Apple hurt app developers, consumers, and alternative payment processors by abusing its market dominance in the iOS app store. Apple has refuted the accusations, claiming that its market share is negligible in India, where Google's Android dominates with 96.5% of the smartphone market.

How it all Started?

A previous disagreement over how to handle probe reports was linked to Apple's most recent request. The CCI recalled its original reports, issued amended versions, and ordered the destruction of the old copies after the corporation claimed in August that the CCI had contained sensitive commercial information in those reports. Apple asserted, however, that the case's first complaint, Together We Fight Society (TWFS), did not follow this instruction. The business asked that the updated reports be withheld and filed a regulatory action against TWFS. This request was denied by the CCI, which declared it "untenable."

The CCI has requested that Apple provide its audited financial accounts for the last three fiscal years as the case moves forward. If the corporation is found to have violated competition laws, these records will assist the regulator in determining possible fines. After reviewing the updated inquiry report, senior CCI authorities are anticipated to render a final decision.

Apple’s App Store Policies Face Strong Criticism

The increased scrutiny of large tech companies in India and around the world coincides with Apple's difficulties with the CCI. Apple's App Store policies have drawn criticism from developers, especially the demand that developers use its in-app payment mechanism and pay a percentage of sales. The CCI's inquiry and subsequent decision may have a big impact on Apple's business operations in India, even if the company insists it doesn't have enough market dominance there to hurt competition.

Apple Expanding its Footprints in India

To assist with the research, creation, and testing of new products, Apple has established a wholly owned company in India called Apple Operations India. In its regulatory filing, the company specified the following proposed activities: hiring engineers for hardware development, leasing facilities, purchasing engineering equipment, and offering failure analysis services to group companies. In a letter of consolation, Apple promised to continue to provide "operational and financial support" for the "foreseeable future." The Macintosh PC manufacturer is establishing a direct subsidiary of the US parent company in India for the first time.

With fixed assets of INR 36.8 crore and capital work-in-progress of INR 38.2 crore, the company's operations in India are making major strides. Through the provision of hardware, software, and other services, the new business will assist independent contractors and manufacturers.

Top international electronics companies like Samsung, LG, and Sony currently have research and development (R&D) facilities in India; however, these are primarily restricted to software development for international launches and hardware localisation of products. Vivo and Oppo, two Chinese phone manufacturers, operate similarly. To ensure tech and back office services and to carry out research and development, numerous multinational corporations from the United States and Europe have established global capability centres (GCCs) in India.