Apple Challenges India Antitrust Probe, Says Investigators Copied Rivals’ Claims

Apple has asked India’s competition regulator to throw out the findings of an antitrust investigation, accusing investigators of relying on complaints from rival companies instead of carrying out an independent assessment.

In a submission dated June 25, the iPhone maker told the Competition Commission of India (CCI) that the investigation into its App Store operations was extremely flawed. 

Apple argued that officials copied claims from complainants almost word for word and failed to properly examine the evidence before concluding that the company had broken competition laws.

The filing is Apple’s strongest response yet in a case that has been running since 2021. The complaint was brought by companies and industry groups, including Match Group, Paytm, PhonePe and the Alliance of Digital India Foundation (ADIF), which accused Apple of forcing app developers to use its own in-app payment system instead of allowing alternative payment options.

Last year, investigators working for the CCI concluded that Apple had engaged in “abusive conduct” within the iOS app ecosystem by making developers use its payment system for digital purchases. Apple has consistently denied the allegation.

In its latest submission, Apple argued that investigators relied heavily on arguments made by rival companies instead of carrying out their own analysis.

“The DG (Director General) made no effort whatsoever to independently verify or critically assess these statements, often parroting them verbatim,” Apple said.

The company also claimed parts of the investigation report mirrored material used in a European Union ruling against Apple, despite what it described as very different market conditions in India. 

Apple said investigators had “blindly replicated” a graphic showing global spending on mobile apps and games.

Apple insisted its position in India’s smartphone market does not justify the allegations. It described itself as a “minuscule player” and said it held less than six per cent of the market during the period covered by the investigation. 

Estimates now place Apple’s market share at about 9%, while devices running Google’s Android operating system account for more than 90% of smartphones in the country.

The company also warned against regulatory measures that could force changes to the App Store.

“Any forced alterations to Apple’s carefully designed App Store could disrupt its integrated business model,” the company said.

It added: “The imposition of remedies would create regulatory uncertainty and could deter investments in India’s digital economy.”

Apple also complained about the way the investigation was handled, saying officials never gave the company an opportunity to present oral evidence or explain its business model during the probe. 

According to the filing, Google was allowed to defend its Android business through several hearings during a separate competition case.

The CCI has not publicly responded to Apple’s latest submission, while Apple declined to comment outside the filing. Match Group, Paytm and PhonePe also did not respond to requests for comment.

The regulator has accused Apple of delaying the case for more than two years by failing to respond promptly to the investigation findings and by separately challenging India’s antitrust penalty framework.

Senior CCI officials are expected to hear arguments from all parties during a closed-door hearing on 21 July before deciding the next steps.

If the regulator eventually rules against Apple, it could impose financial penalties under India’s competition law. The law allows fines of up to 10% of a company’s turnover, although Apple has already submitted its India-specific financial information for the 2022 to 2024 financial years for any potential calculation.

Apple argued that, if penalties are considered, regulators should also take into account what it described as its “unblemished record” and its contribution to the Indian economy. The company said it has exported iPhones worth $51 billion from India over the past five years.

The case comes at an important time for Apple as it expands manufacturing outside China. India has become one of the company’s biggest production centres, with suppliers such as Tata and Foxconn increasing their operations. 

Counterpoint Research estimates that India will produce about 26% of the world’s iPhones this year, up from 6% four years ago.

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