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Apple to resist India order to preload state-run app as political outcry builds

NEW DELHI, December 2 (Reuters) — Apple does not plan to comply with an order to install a government-owned cybersecurity application on its smartphones and will convey its concerns to New Delhi after the government’s move triggered surveillance concerns, three sources familiar with the matter said.

The Indian government has secretly ordered companies, including Apple, Samsung and Xiaomi, to pre-install the app called Sanchar Saathi, or Communication Partner, on their phones within 90 days. The purpose of the application is to track stolen phones, block them and prevent their misuse.

The government also wants manufacturers to make sure the app is not disabled. For devices already in the supply chain, manufacturers must push the app to phones via software updates, Reuters first reported on Monday.

India’s telecommunications ministry later confirmed the move, describing it as a security measure against “serious compromise” of cybersecurity. But Prime Minister Narendra Modi’s political opponents and privacy advocates criticized the move, saying it was a way for the government to gain access to India’s 730 million smartphones.

Apple does not plan to comply with the directive and will tell the government that it has not complied with such instructions anywhere in the world, as it raises a number of privacy and security issues for the company’s iOS ecosystem, two industry sources familiar with Apple’s concerns said. They declined to be named publicly because the company’s strategy is private.

“This isn’t just like taking a sledgehammer, it’s like a double-barreled gun,” the first source said.

Apple and the telecom ministry did not respond to requests for comment.

In the fight against the recent rise in cybercrime and hacking, India is joining authorities around the world to impose rules that prevent the use of stolen phones for fraudulent purposes or the promotion of state-sponsored government service apps, most recently Russia.

“BIG BROTHER CANNOT WATCH US”

The decision sparked outrage both inside and outside Parliament on Tuesday, with some MPs accusing the government of introducing an app that would act as a surveillance tool. Rahul Gandhi of India’s main opposition Congress Party said he planned to speak in Parliament about the practice.

The Congress Party called for the revocation of the mandate. “Big Brother cannot watch us,” KC Venugopal, a senior Congress leader, said on X.

The Modi government’s press release stated that the app could help combat cases of cloned or fake IMEI numbers leading to fraud and misuse of the network.

“India has a large second-hand mobile device market,” the telecom ministry said in a statement late Monday. “Instances of stolen or blacklisted devices being resold have also been observed.”

OTHER COMPANIES ARE EXAMINING THE INDIAN GOVERNMENT ORDER

While Apple tightly controls the App Store and proprietary iOS software that is crucial to its $100 billion a year services business, Google’s Android is open source, giving manufacturers like Samsung and Xiaomi more leeway to change their software.

The second source said Apple does not plan to go to court or take a public stance, but will tell the government it will not comply with the order due to security vulnerabilities.

The person said Apple “can’t do that.”

The enforcement order comes as Apple is fighting in court with an Indian watchdog over the country’s antitrust criminal law. Apple said it could face fines of up to $38 billion in the case.

A fourth industry source familiar with the matter said other brands, including Samsung, were reviewing the order. Samsung did not respond to Reuters’ questions.

Sources said the government implemented the decision without consulting the industry.

(Reporting by Aditya Kalra in New Delhi and Munsif Vengattil in Bengaluru; Editing by Thomas Derpinghaus)

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