India puts Apple’s iPhone App Store on the clock as $38 billion antitrust fine risk looms

January 15, 2026
India puts Apple’s iPhone App Store on the clock as $38 billion antitrust fine risk looms

NEW DELHI, Jan 16, 2026, 01:14 IST

  • India’s antitrust watchdog warned Apple it will push ahead in an App Store case unless it responds by next week
  • A separate Indian proposal would force phone makers to share source code, drawing privacy and legal pushback
  • Apple’s app gatekeeping is also facing fresh pressure in the U.S. over X and Grok content complaints

India has issued a final warning to Apple in an antitrust case over its iPhone App Store, telling the U.S. company it will move ahead next week after more than a year of delays. Apple has argued it could face a fine as high as $38 billion if penalties are based on global turnover. (Reuters)

The warning lands as New Delhi weighs a broad smartphone security overhaul that would force phone makers to hand over source code — the underlying programming instructions — for government testing, and keep device logs for a year. Akash Karmakar, a partner at Panag & Babu, called such access “a massive step backwards” for India’s ease-of-doing-business push. (Reuters)

For Apple, the squeeze is playing out in a market that is huge but price sensitive, where regulators have been more willing to set rules for foreign tech. Apple led global smartphone shipments in 2025 with a 20% share, Counterpoint said, with Samsung at 19% and Xiaomi at 13%; analyst Varun Mishra pointed to “solid demand in emerging and mid-sized markets” behind Apple’s lead. (Reuters)

The India antitrust case grew out of complaints since 2022 from Tinder-owner Match Group and Indian startups, which argue Apple’s iOS App Store rules squeeze developers and limit choice on iPhones.

Investigators issued a report in 2024 finding Apple engaged in “abusive conduct” in the iOS apps market, and regulators later sought Apple’s objections and financial details used to assess penalties. The Competition Commission of India complained the company kept seeking extensions and said it would proceed even without Apple’s response.

In court filings earlier this month, the watchdog defended a 2024 change that lets it calculate fines using worldwide revenue, arguing India-only turnover can make penalties too easy for multinationals to absorb. The commission said the approach keeps penalties at “real deterrent value” in cross-border digital markets; Apple has argued it could lead to disproportionate punishment for conduct in India. (Reuters)

But the timetable could still slip if courts curb what data Apple must provide, or if the company appeals any eventual order, stretching the case in a fast-moving smartphone market.

Outside India, Apple’s role as a gatekeeper for iPhone apps is also drawing pressure on content. In the United States, a coalition of women’s groups and tech watchdogs urged Apple and Google to remove X and its Grok chatbot from their app stores; UltraViolet campaign director Jenna Sherman said, “We are really imploring Apple and Google to take this extremely seriously.” (Reuters)

Apple has not publicly commented on the India antitrust warning and did not respond to queries, while the government says consultations on the smartphone security proposal are ongoing. The next court hearing in the penalty dispute is scheduled for Jan. 27.

Apple Faces $38 Billion Fine in Global Antitrust Dispute | WION

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