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Apple ( AAPL ) faces antitrust battles in India, elsewhere

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Relief for Apple ( AAPL ) as India recalls investigation reports

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Apple ( AAPL ) said confidential information was given to opponents

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Revision of reports can delay probe, sources say

(Adds lawyer comments, details; paragraphs 10-18)

By Aditya Kalra

NEW DELHI, Aug 13 (Reuters) - India's antitrust body has

ordered an unusual recall of reports of an investigation that

found Apple ( AAPL ) breached competition laws, after the U.S. giant

complained its commercial secrets were disclosed to opponents,

including Tinder-owner Match.

The move will prolong a procedure, begun in 2021 and already

marred by delays, that centres on Apple's ( AAPL ) alleged abuse of its

dominant position in the apps market to force developers to use

its proprietary in-app purchase system, at a fee of up to 30%.

In an Aug.7 confidential order that Reuters was the first to

report, the antitrust body has asked all Apple's ( AAPL ) opponents in

the case for the return of the reports.

"It is imperative that such information be maintained

confidential, ensuring that no unauthorised disclosure occurs,"

the watchdog, the CCI, said in a four-page order signed by its

top four officials.

The order did not say what confidential information Apple ( AAPL )

was concerned about.

However, a source with direct knowledge of the matter said

Apple ( AAPL ) was concerned about disclosures related to revenue of its

India app store and figures on market share.

In July, Reuters reported that two reports by the antitrust

investigations unit in 2022 and 2024 found Apple ( AAPL ) had exploited

its dominant position in the market for app stores on its iOS

operating system.

Among those now asked for the return of the reports are

Match and Indian startup group ADIF, which represents

financial giant Paytm.

The order follows Apple's ( AAPL ) private complaint to the CCI that

versions of reports shared with parties disclosed "Apple's ( AAPL )

confidential commercial sensitive information" adding that the

watchdog must "recall and withdraw" them, the order showed.

Apple ( AAPL ) and Match declined to comment. The watchdog, the

Competition Commission of India, and the Indian startup group

ADIF, did not respond to requests for comment.

Such a recall of reports once distributed is rare and will

require them to be revised by the redaction of information

deemed confidential, said three Indian lawyers familiar with the

CCI process and a government source with direct knowledge.

"This is very unheard of ... We are looking at two to three

months of delay, easily," said one of the lawyers who spoke on

condition of anonymity.

The CCI reports on Apple ( AAPL ) - one from 2022 and another from

2024 - were the most critical stage of the Indian investigation.

Following the response of parties, the CCI typically would

have ruled on fines or any change in business practices at

Apple ( AAPL ), if needed.

Apple ( AAPL ) faces antitrust heat across the globe. In June,

European Union antitrust regulators said it breached the bloc's

tech rules, which could cost the iPhone maker a hefty fine. It

also faces an inquiry into new fees imposed on app developers.

CCI's first report in the Apple ( AAPL ) case was drafted in 2022 but

returned for further internal investigation, confidential legal

papers show.

It has now been recalled with the latest 2024 report which

concluded that Apple ( AAPL ) engaged "in abusive conduct and practices"

and its payment policy "adversely affects the app developers,

users and other payment processors".

Apple ( AAPL ) has denied wrongdoing, saying it was a small player in

India, where phones using Google's Android system are dominant.

Apple's ( AAPL ) iOS powered about 3.5% of India's 690 million

smartphones by mid-2024, with the rest using Android, says

Counterpoint Research, which adds however that Apple's ( AAPL ) domestic

smartphone base has become five times larger in as many years.

(

Reporting by Aditya Kalra; Editing by Clarence Fernandez)