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Indian watchdog recalls two Apple reports

by on14 August 2024


Jobs’ Mob complains they were “commercially sensitive”

India's antitrust body has taken the unusual step of recalling two reports detailing competition law breaches by Apple after the tech giant complained that it had disclosed commercial secrets to competitors.

For those not in the know, Apple suffers from a Social Anxiety Disorder which means that it keeps everything about its doings completely secret, even when there is nothing to hide.

However, withdrawing these reports is in Apple’s interest because it will prolong an already delayed investigation, which began in 2021, centring 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.

Apple has already been subject to antitrust probes, orders in Europe, Japan, and Korea, and lawsuits from corporate rivals. It has denied all wrongdoing, despite making cosmetic changes to its systems to appease the regulators.

Reuters reported last month that two reports prepared by India's antitrust investigations unit in 2022 and 2024 and circulated to concerned parties in July found Apple had exploited its dominant position in the market for app stores on its iOS operating system to the detriment of app developers, users, and other payment processors.

However, in an 7 August a confidential order the Competition Commission of India (CCI) asked all Apple's opponents in the case for the return of the reports.

"Such information must be maintained confidential, ensuring that no unauthorised disclosure occurs," the CCI said in a four-page order signed by its top four officials.

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.

The order did not specify what information Apple was concerned about. A source with direct knowledge of the matter pointed to disclosures related to revenue generated by Apple's India app store and figures on market share.

Apple claims it is a minor player in India, where phones using Google's Android system are dominant.

Match, the Indian startup group ADIF, which represents financial giant Paytm and other companies, are among those now being asked for the reports' return.

ADIF associate director Prateek Jain said the recall highlighted the importance of protecting commercial secrets while ensuring thorough and impartial investigations.

"Indian startups deserve a fair playing field, free from the constraints imposed by dominant global players," he added.

Three Indian lawyers familiar with the CCI process and a government source with direct knowledge said such a recall of reports is rare and will require them to be revised by redacting confidential information.

"We are looking at two to three months of delay, easily," said one of the lawyers who spoke anonymously.

Following responses to the reports by the concerned parties, the CCI typically would have ruled on fines or any required change in Apple's business practices.

Last modified on 14 August 2024
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