India’s Competition Commission Issues Final Ultimatum to Apple in Antitrust Case

India’s Competition Commission Issues Final Warning to Apple in Prolonged Antitrust Investigation

India’s Competition Commission has delivered a final ultimatum to Apple concerning a protracted antitrust investigation. The regulator asserts that Apple’s continuous requests for extensions are obstructing the resolution of the case.

Background of the Investigation

The inquiry commenced in 2022 following complaints from Match Group, the parent company of Tinder, along with several Indian startups. The allegations centered on Apple’s purported monopolistic practices within the iOS app ecosystem. Subsequent findings by the Competition Commission of India (CCI) suggested that Apple had indeed misused its dominant position. Consequently, Apple was instructed to present its objections and furnish financial data essential for determining potential penalties.

Stalemate in Proceedings

Progress in the case has been hindered by Apple’s repeated appeals for additional time and its challenges to the methodology proposed for calculating fines. This has resulted in prolonged legal reviews without substantial advancement. In a confidential directive dated December 31, the CCI expressed that Apple’s delays are undermining the process and impeding a timely resolution. The commission highlighted that despite an October 2024 request for Apple’s response and pertinent financial information, the company has persistently sought more time. The CCI has now indicated that it will proceed with the case, even in the absence of Apple’s input.

Apple’s Perspective

Apple contends that if penalties are based on its global revenue, it could face fines up to $38 billion. As a result, the company has legally contested the penalty framework and requested a suspension of the antitrust proceedings until a judicial decision is reached on this matter. According to sources, Apple intends to await the upcoming court hearing on January 27 before providing further responses. The company perceives the CCI’s recent actions as an attempt to circumvent the judicial process. Should Apple fail to submit its response within the stipulated timeframe, the CCI has stated its intention to move forward independently, potentially bringing the longstanding dispute closer to a conclusion, notwithstanding Apple’s ongoing legal challenges.

Implications for Apple’s Operations in India

This development occurs amidst increasing global scrutiny of Apple’s business practices. India, as a rapidly expanding market for smartphones and digital services, holds significant importance for Apple. The outcome of this antitrust case could have profound implications for Apple’s operational strategies and market presence in the region.