India Orders Apple to Cooperate in Antitrust Probe

Key Takeaways

• Delhi High Court rejected Apple's request to halt the antitrust case
• Apple must share financial data with India's Competition Commission
• No final penalty order will be issued until at least July 15

An Indian court has told Apple to stop stalling and start cooperating with antitrust investigators examining its App Store practices. The Delhi High Court rejected the company's attempt to freeze the case, marking another setback for Apple in its growing list of global regulatory battles.

In an order posted Saturday, the court directed Apple to "fully cooperate" with India's Competition Commission of India (CCI). But it also gave Apple a small reprieve: no final order in the matter will be issued until at least July 15.

What Apple Wanted

Apple asked the court to put the entire case on hold. The company's argument: the CCI is overstepping by demanding financial data while Apple challenges the law that governs how antitrust penalties are calculated.

Financial information is typically needed to calculate penalties. Apple views submitting this data as premature when it disputes the penalty framework itself.

The court disagreed. While it did not grant the stay Apple requested, it did limit the CCI's power to issue a final ruling until mid-July. This gives Apple more time to argue its case but does not free it from cooperating with investigators.

The Investigation's Origins

The CCI has been seeking Apple's financial information since an investigation in 2024 found the company had abused its dominant position in the iPhone apps market. Apple has denied any wrongdoing.

The company has resisted the CCI's demands, arguing that submitting financial data while challenging the penalty law would be pointless. The watchdog, Apple says, should wait until that legal question is settled.

Apple did not respond to requests for comment on the court order.

India's Growing Importance

India is becoming a critical market for Apple. According to Counterpoint Research, iPhones now hold 9% of the Indian smartphone market. That is more than double the 4% share from two years ago.

This growth makes the antitrust case more than a legal annoyance. A significant penalty or forced changes to App Store practices in India could affect Apple's expansion strategy in one of the world's largest smartphone markets.

Part of a Global Pattern

The Indian case joins a long list of antitrust challenges Apple faces worldwide. Regulators in the European Union, United States, Japan, and South Korea have all scrutinized the company's App Store practices, particularly its commission structure and restrictions on alternative payment systems.

Apple has generally argued that its App Store rules protect user security and privacy. Critics say the rules protect Apple's 15% to 30% cut of app purchases and subscriptions.

What Happens Next

The July 15 deadline sets the next milestone. By that date, the court may allow the CCI to proceed with a final order, or Apple may secure further delays through additional legal challenges.

In the meantime, Apple must cooperate with investigators. That likely means handing over the financial data it has resisted sharing.

Frequently Asked Questions

What is the CCI investigating Apple for?

The Competition Commission of India is investigating whether Apple abused its dominant position in the iPhone apps market. A 2024 investigation concluded that Apple did violate competition rules.

Why does the CCI need Apple's financial information?

Financial data is typically required to calculate antitrust penalties. The size of fines often depends on a company's revenue or profits in the affected market.

Can Apple still appeal the court order?

Apple can continue its legal challenges, including its dispute over India's antitrust penalty calculation law. However, the court's order to cooperate remains in effect while those challenges proceed.

How does this affect Apple's business in India?

Depending on the final outcome, Apple could face financial penalties or be forced to change its App Store practices in India. The outcome could affect pricing, developer relationships, and Apple's growth strategy in a market where its share recently doubled.

Source: Tech-Economic Times / ET