Apple has taken a significant step in its ongoing antitrust investigation in India by agreeing to provide financial information regarding its operations in the country. This decision follows a lengthy inquiry that concluded the tech giant had potentially abused its dominant market position.
The investigation is particularly crucial for Apple, as India has become a strategically important market, especially with the company's efforts to bolster iPhone manufacturing and reduce reliance on China.
Recent data indicates that Apple's iPhone market share in India has risen to approximately 9%, a notable increase from about 2% five years ago. This growth highlights the company's expanding footprint in the region.
A confidential order from the Competition Commission of India (CCI) revealed that Apple agreed last month to submit the requested financial details, which are essential for the regulator's assessment of potential penalties.
During a hearing on May 21, Apple requested a final extension until June 25 to provide the necessary financial data, which the CCI granted. The investigation, which wrapped up in 2024, found that Apple had misused its dominant position in the iPhone applications market. Apple has disputed these findings and plans to contest the conclusions.
Apple has argued that the proceedings should be paused while it challenges India's revised antitrust penalty framework, which allows the CCI to calculate fines based on a company's global revenue rather than just its earnings in India. This could expose Apple to penalties potentially reaching $38 billion.
Despite Apple's claims, the CCI has maintained that it initially required only India-specific financial information and accused the company of delaying the process with parallel legal challenges. A judge recently directed Apple to cooperate with the ongoing investigation.
The case dates back to 2021, initiated by complaints from the Alliance of Digital India Foundation (ADIF) and Match Group, which raised concerns about Apple's App Store policies, particularly regarding its in-app payment system.
ADIF has urged the CCI to prevent further delays in the case. Apple has also been instructed to submit any objections it may have regarding the investigation report, which stated that the App Store operates as an unavoidable trading partner for app developers, effectively limiting their ability to use third-party payment systems for in-app purchases.
Apple continues to assert that it is a relatively minor player in India's smartphone market, where Android devices dominate sales. In a related case, Google faced a $113 million fine in 2022 for allegedly exploiting its dominant position by requiring app developers to use its in-app billing system, which it also denied.
