Apple Takes India’s Antitrust Penalty Law to Court — New Rules Could Cost the Tech Giant $38 Billion
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Apple has reportedly taken legal action in India, moving to
the Delhi High Court to contest a recently amended antitrust penalty framework
that could dramatically increase its financial exposure. The revised
Competition Commission of India (CCI) rules allow penalties to be calculated
based on a company's global revenue, not just its earnings in India.
According to reports, this shift could place Apple at risk of a $38 billion
(nearly Rs. 3.4 lakh crore) fine if the ongoing investigation results in an
adverse ruling.
Apple Pushes Back Against CCI’s Global Revenue-Based Penalty Formula
The controversy stems from the Competition (Amendment)
Act, 2023, which introduced a clause enabling the CCI to impose fines based
on a company’s worldwide turnover. Although the law passed in 2023, it was
formally enforced in March 2024 after a government notification.
One of the most debated provisions allows regulators to levy
up to 10% of a company’s global turnover, payable over a three-year
period. For a company of Apple’s scale, this could reach tens of billions of
dollars. Apple is reportedly challenging this very clause.
Apple’s Petition: “Disproportionate, Arbitrary, and Unconstitutional”
According to a Reuters report citing a court filing, Apple
has submitted a 545-page petition urging the Delhi High Court to strike
down the global-turnover penalty mechanism. The company argues that:
- The
computation based on worldwide turnover is unrelated to its relatively
limited business footprint in India.
- The
penalty framework is excessive and disproportionate to the alleged
conduct.
- The
amendment allows the law to be used retrospectively, which Apple
claims is unfair.
The filing reportedly states that the CCI has already
applied the global turnover formula in a separate case involving conduct that
dates back nearly a decade.
Apple asserts that any penalties—if warranted—should be
calculated only on the revenue generated within India or by the specific
division under scrutiny.
Background: CCI’s App Store Investigation
The petition follows a long-running investigation launched
by the CCI in 2021, examining Apple's App Store policies. A confidential
report from July 2024—quoted by Reuters—found Apple’s mandatory use of its
in-app payments system and restrictions on third-party billing to be anti-competitive.
Apple has continued to deny these accusations, insisting
that developers in India have multiple alternative channels for
distribution and monetisation outside the App Store.
Case Status and Upcoming Hearing
The matter has been scheduled for hearing before a division
bench of the Delhi High Court on December 3. As of now, no interim
protection or temporary stay has reportedly been granted to Apple.
The outcome of this case could influence how global tech
companies are regulated in India going forward—especially those operating large
digital marketplaces.
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