Aditya Kalra and Munsif Vengattil, reporting for Reuters:

Apple does not plan to comply with a mandate to preload its smartphones with a state-owned cyber safety app and will convey its concerns to New Delhi, three sources said, after the government’s move sparked surveillance concerns and a political uproar.

The Indian government has confidentially ordered companies including Apple, Samsung and Xiaomi to preload their phones with an app called Sanchar Saathi, or Communication Partner, within 90 days. The app is intended to track stolen phones, block them and prevent them from being misused.

The government also wants manufacturers to ensure that the app is not disabled. And for devices already in the supply chain, manufacturers should push the app to phones via software updates, Reuters was first to report on Monday. [...]

Apple however does not plan to comply with the directive and will tell the government it does not follow such mandates anywhere in the world as they raise a host of privacy and security issues for the company’s iOS ecosystem, said two of the industry sources who are familiar with Apple’s concerns. They declined to be named publicly as the company’s strategy is private.

The second source said Apple does not plan to go to court or take a public stand, but it will tell the government it cannot follow the order because of security vulnerabilities. Apple “can’t do this. Period,” the person said.

To my knowledge, there are no government-mandated apps pre-installed on iPhones anywhere in the world. I’m not even sure how that would work, technically, given that third-party apps have to come from the App Store and thus can’t be installed until after the iPhone is configured and the user signs into their App Store Apple Account.

The app order comes as Apple is locked in a court fight with an Indian watchdog over the nation’s antitrust penalty law. Apple has said it risks facing a fine of up to $38 billion in a case.

This is another one of those laws like the EU’s DMA, where maximum possible fines are based on a percentage of global revenue. No one in India seems to actually be threatening any such fine, but it’s ludicrous that it’s even possible.