Push Indian government to pressure Apple Inc. (AAPL.US) and Alphabet Inc. Class C (GOOGL.US) to request the government app platform to be launched on the App Store.

According to reports, India is pressuring smartphone manufacturers such as Apple Inc. (AAPL.US) and Alphabet Inc. Class C (GOOGL.US) to open up their app stores to promote government-supported apps. However, this move could lead to a face-off between the country and these tech giants in social services, safety standards, and the smartphone ecosystem. Sources revealed that the Indian Ministry of Technology convened executives from Apple Inc., Alphabet Inc. Class C, and other smartphone manufacturers last month, asking them to provide direct access to government apps for Indian users. Officials requested that tech companies make government-supported GOV.in app stores available within their respective app stores. Sources say that Alphabet Inc. Class C is resisting this initiative, and Apple Inc. is unlikely to agree as well. In response, government officials even discussed the possibility of policy enforcement or legal measures to compel these tech giants to compromise. It is understood that Alphabet Inc. Class C's Android system holds over 90% market share in India's approximately 700 million smartphones. The goal of the Indian Ministry of Technology is to expand the coverage of public welfare services through technology. Officials expressed their desire for these government-supported apps to come pre-installed on new devices and be available for download through third parties without triggering warnings like "unknown sources." In fact, similar measures have been implemented in other countries. In 2021, Apple Inc. began offering Russian users the option to install government-recommended apps to comply with local regulations. However, Apple Inc. and Alphabet Inc. Class C have always maintained strict control over their app stores, which is crucial for their extensive influence in the global smartphone sector. These app stores have millions of apps, essential for maintaining the smartphone ecosystem and a source of substantial revenue. Apple Inc. and Alphabet Inc. Class C typically take a 30% cut from app revenue and rigorously vet developers to reduce the risks of viruses, cyber attacks, and software vulnerabilities. However, some regulatory bodies and app developers have criticized this business model, accusing these companies of monopolistic behavior. Currently, various Indian government apps are individually listed on the app stores of Apple Inc. and Alphabet Inc. Class C. Officials believe that if the GOV.in app suite could appear as a whole in the store, its usage rates could significantly increase. Alphabet Inc. Class C stated that they are actively collaborating with the government to support their goal of protecting the mobile ecosystem but did not directly respond to questions about the app store solution. Representatives from Apple Inc. and the Indian Ministry of Technology did not respond to requests for comment. It is understood that India often takes the lead in imposing strict regulations on global tech companies, including banning TikTok in 2020 and requiring Meta (META.US) to provide access to encrypted WhatsApp messages. India's tech policies often resonate in other countries, causing headaches for large tech companies. At the same time, as India becomes an increasingly important consumer market for tech companies, this strict regulatory approach has also raised concerns. The country has become a key growth market for smartphones from companies like Apple Inc. and Alphabet Inc. Class C. In recent years, Apple Inc.'s suppliers have expanded their production scale in India, accounting for over 14% of global iPhone production. Alphabet Inc. Class C also plans to invest billions of dollars in southern India to assemble its flagship Pixel smartphones. Alphabet Inc. Class C has also made significant investments in digital payments and other services such as artificial intelligence.