Apple Faces Allegations of Withholding Data in India's Antitrust Investigation, Final Hearing Scheduled
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Apple Faces Allegations of Withholding Data in India's Antitrust Investigation, Final Hearing Scheduled

Detailed Analysis

India's Antitrust Body Fast-Tracks Apple Penalty Case

The Competition Commission of India (CCI) has fast-tracked a decision on penalties for Apple, a U.S. firm accused of abusing its dominant position in the iPhone apps market in India. According to an April 8 order, Apple has failed to submit financial information and views on the investigation since October 2024, instead citing a separate case pending in the Delhi High Court.

The CCI typically requires financial information from companies to calculate penalties when they are found to have contravened the law. In this case, Apple denies any wrongdoing and fears it could be fined up to $38 billion if the watchdog uses its global turnover to calculate penalties.

Apple has been afforded adequate opportunities to file its objections or suggestions to the investigation report, but has not submitted the requisite financial information, the CCI order states. The Indian case is among the many Apple faces around the globe for alleged antitrust breaches. India is a key market for Apple, where its iPhones have a 9% market share, compared to just 4% two years ago, according to Counterpoint Research.

Although the CCI has given Apple two more weeks to file its responses, it has for the first time fixed a final hearing date of May 21. This significant step signals the watchdog is hardening its stance, lawyers said. Apple has the opportunity to submit its financials supported by an auditor's certificate and then argue on the quantum of penalty during the hearing based on these financials.

However, if Apple fails to do so, its arguments on the quantum of penalty will be constrained accordingly. The Apple case started in 2021 after a non-profit group opposed Apple's practices. Later, Tinder-owner Match and Indian startups also opposed Apple. CCI investigators issued a report in 2024 that Apple exploited its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system.

Apple denies wrongdoing by arguing it is a small player in India, where phones that use Google's Android system are dominant. The CCI rejected Apple's request in March to put its proceedings "in abeyance" while the Delhi High Court hears its challenge to penalty law. The watchdog has maintained that Apple is trying to stall the antitrust case by challenging the penalty law.

| Market Share | Year | Company | | --- | --- | --- | | 9% | 2024 | Apple | | 4% | 2022 | Apple |

Investor Takeaway

Investors should be cautious of potential penalties and fines on Apple due to the ongoing antitrust investigation.

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