Apple is facing a detailed investigation by the Central Consumer Protection Authority (CCPA) over allegations that its iOS 18 software update caused display, microphone and other functionality problems on iPhones, with consumers allegedly having to pay for expensive repairs, reported news agency Reuters.
The investigation has also put ‘s software warranty terms under the scanner. The company says its software is provided without warranty, while the regulator is examining whether consumers’ rights were violated when they were charged for repairs linked to problems allegedly caused by the update, according to the report.
The CCPA escalated the matter on July 29 and referred it to its investigation wing for a “detailed investigation”, according to documents reviewed by Reuters. The regulator said the case involves alleged violations of consumer rights.
The investigation raises the possibility of penalties for Apple and, more significantly, could lead to demands for refunds or changes to the company’s business practices if it is ultimately found to have violated consumer protection rules.
The case relates to Apple’s iOS 18 update, which began rolling out in late 2024.
The CCPA said it had received complaints that the update led to several problems, including green, pink or white lines appearing on iPhone screens and microphone malfunctions.
According to the regulator, consumers subsequently had to pay for display replacements and other repairs despite the problems allegedly stemming from Apple’s software upgrade.
The CCPA has accused Apple of violating the rights of “consumers as a class”, rather than treating the matter simply as a collection of individual complaints.
The estimated cost of servicing damage to an iPhone 15 screen is Rs 27,900, or $291, according to the report. That is more than a third of the phone’s retail price.
The regulator told Apple that charging consumers for problems arising from the company’s “own negligence” violates the principle of fair trade.
Apple has rejected the accusations and is contesting the matter.
In its response to investigators on August 20, Apple said it had not identified any issues or safety concerns with iOS 18 in India. The company also said it would work with the authorities to provide clarity on how it responded to customers.
Apple has also challenged the basis of the investigation, saying the CCPA’s case was based on 75 complaints. It pointed out that only around 11% of iPhones were still running iOS 18 by June 2026.
The company has defended its software warranty terms as well.
Apple’s software licence agreements state that the software is provided “without warranty of any kind”. The company’s limited warranty, meanwhile, covers hardware.
Apple argues that such a no-warranty clause is not unusual and that consumers are informed about it before installing the software. It also pointed to similar practices followed by other electronics companies, including Sony and Samsung.
“A requirement that every issue … be treated as a breach of an absolute warranty would effectively convert any software provider into an insurer against all technological risk,” Apple said in its response, according to the report.
The company has maintained that iOS 18 did not have any systemic issues in India.
The investigation could have implications beyond a possible monetary penalty.
Consumer law allows investigators to seek documents and hold hearings before submitting a final report to the regulator, Kirti Mahapatra, a New Delhi-based lawyer specialising in consumer law told Reuters.
She said that where contractual terms or warranty conditions form part of an alleged unfair practice, the CCPA can ask a company to ensure that accurate information is provided to customers.
The regulator can also seek changes to such terms, she said, although that would be an unprecedented step.
This makes the software warranty issue particularly important in Apple’s case. The question is not only whether some consumers experienced problems after an update, but whether a company can rely on a blanket software no-warranty clause when consumers allege that a manufacturer-issued update caused damage or loss of functionality in a device they had already purchased.
The investigation will determine whether Apple’s conduct breached consumer protection rules. No final finding has been made yet.
Software updates have previously brought smartphone companies under regulatory scrutiny.
In 2018, Italy sanctioned Apple over its handling of the iOS 10 update. Authorities there found that Apple had not adequately informed consumers about how the update could affect the performance of older iPhones and had not provided support to phones that were outside their legal warranty.
The latest Indian investigation comes as Apple is rapidly expanding its presence in the country.
Apple’s iPhone market share in India rose to 9% in 2025 from 4% in 2022, according to Counterpoint Research. The company is also expanding iPhone manufacturing in India.
That makes the consumer investigation an important test of how software-related problems are treated under India’s consumer protection framework, particularly when the software running a device is excluded from the manufacturer’s limited hardware warranty.
For Apple, the outcome could determine whether its existing approach to software warranties is sufficient when consumers claim that a company-issued update itself has caused costly problems.