Apple is strongly opposing India’s new antitrust penalty framework by filing a petition with the Delhi High Court to challenge the country’s 2024 law. This law allows regulators to impose fines on companies based on their global turnover, potentially exposing Apple to a penalty of up to $38 billion, which would be one of the largest fines in India’s corporate history. This legal challenge represents the first-ever opposition to the Competition Commission of India’s revised penalty system and could significantly impact how global tech giants are regulated in India in the future.
In a comprehensive 545-page court filing obtained by Reuters, Apple is requesting judges to declare the 2024 amendment to India’s competition law as “illegal” and “unconstitutional.” The rule, implemented last year, grants the CCI the authority to calculate fines using a company’s worldwide turnover rather than solely its revenue generated in India.
Apple argues that this broad penalty structure is “manifestly arbitrary, unconstitutional, grossly disproportionate, unjust,” and extends beyond what is reasonable for domestic violations. The company is concerned that applying this rule could lead to fines amounting to 10% of its average global turnover over three fiscal years, potentially reaching $38 billion. This challenge comes at a time when Apple is projected to surpass Samsung in smartphone shipments in 2025.
The legal dispute by Apple is linked to an ongoing antitrust investigation initiated in 2022 following complaints from Match Group, the owner of Tinder, and various Indian startups. The CCI’s investigation revealed preliminary evidence of Apple engaging in “abusive conduct” on its iOS App Store by limiting third-party payment options and charging commissions of up to 30% on in-app transactions.
Apple has denied any wrongdoing, asserting that it operates a fair and secure platform and highlighting Google’s Android as the dominant player in India’s mobile ecosystem. The regulator has yet to reach a final decision or determine any financial penalties.
In its filing, Apple highlighted that the CCI had retroactively applied the new global turnover rule in an unrelated case on November 10, citing violations from almost a decade ago. This compelled Apple to challenge the law to prevent similar treatment in its current case. The company’s stance is that penalties should be restricted to revenue from the specific business activity under investigation and not the entire global operations of a company.
Legal experts believe Apple faces a challenging battle, with Gautam Shahi, a competition law partner at Dua Associates, stating that the amended law explicitly allows the CCI to consider global turnover. The government officials affirm that the CCI’s intention is to align India’s competition framework with EU-style antitrust regulations, which also permit penalties based on a company’s total global turnover.
Despite Apple’s claims of being a minor player compared to Android in India, data from Counterpoint Research shows a significant increase in Apple’s smartphone presence in the country over the past five years. This growth is attributed to expanded local manufacturing, strong premium demand, and government incentives for domestic production.
The upcoming hearing on December 3 will determine the outcome of Apple’s plea, potentially setting a critical precedent for how India handles competition enforcement against multinational corporations. A ruling against Apple could result in a substantial fine, signaling a shift towards using global turnover as a benchmark for penalties in one of the world’s rapidly expanding digital markets.