In a significant development, India's antitrust regulator has decided to withdraw a report accusing Apple Inc. of abusing its dominant position in the country's digital market. This decision marks a temporary retreat from the ongoing investigation into the tech giant's practices in the region.

According to sources familiar with the matter, the Competition Commission of India (CCI) conducted an initial probe earlier this year and concluded that Apple exerted significant influence over digital products and services provided to consumers in the Indian market. However, following Apple's objection to the inclusion of sensitive, privileged information in the probe report, the agency has decided to retract it.

The withdrawal of the probe report raises uncertainty about whether the CCI can resuscitate the investigation in the near future. As a potential next step, the CCI may consider releasing a revised version of the report, excluding the confidential information. This action would effectively delay any further progress at the regulatory level.

Sources have revealed that the privileged information shared by Apple with the director general of investigation included business data such as sales numbers in India, which are not publicly disclosed. This information was provided to assist in the probe and was intended to remain private.

While representatives from the CCI were unavailable for immediate comment, Apple declined to comment on the matter.

The global tech industry is currently facing intensifying scrutiny from regulators worldwide, with allegations of unfair business practices in various markets, including mobile apps and content. The Indian probe specifically targeted Apple's billing practices in the mobile apps market, where it competes against other prominent players such as Google.

Apple is actively defending its app policies on multiple fronts, including legal challenges in Europe, South Korea, and Japan, as well as a lawsuit in the United States. The company maintains that its commission rates are justified by the security and peace of mind offered to users through the app store, while also providing developers with a global platform to showcase their products.

Despite controlling only a single-percentage share in India's smartphone market, which is dominated by other foreign brands, Apple views the country as a crucial manufacturing base. The tech giant is reportedly seeking to reduce its reliance on China amidst escalating geopolitical tensions. The recent recall of the probe report and the findings were initially reported by Reuters last month but were not made public and were shared internally with regulators.

As the situation unfolds, it remains to be seen how this development will impact Apple's operations in India and whether the CCI will take further action in the future.