Apple Challenges India’s Antitrust Law
- Court Filing and Potential Penalties
Apple has filed a petition at the Delhi High Court contesting India’s new antitrust penalty framework. The law, introduced in 2024, allows the Competition Commission of India (CCI) to calculate fines based on a company’s global turnover rather than only its Indian revenue. According to Apple’s filing, this could expose the company to penalties of up to $38 billion, equivalent to 10% of its average global turnover over three fiscal years. The case represents the first legal challenge to the revised penalty rules.
Investigators at the CCI previously accused Apple of abusive conduct in the iOS app market, following complaints from Match Group and Indian startups. Apple has denied wrongdoing, and the regulator has not yet issued a final decision on the matter. The company argues that applying global turnover in penalty calculations is arbitrary and disproportionate. Both Apple and the CCI declined to comment publicly on the filing.
Retrospective Application and Market Context
Apple highlighted that the CCI applied the new rules retrospectively in an unrelated case earlier this month. The company said it had no choice but to challenge the law to avoid similar retroactive penalties. Apple maintains that it is a smaller player in India compared to Google’s Android, which dominates the local smartphone market. Nonetheless, research shows Apple’s user base in India has quadrupled in the past five years.
The CCI’s findings last year included restrictions on third-party payment processors for in-app purchases, where Apple’s fees can reach up to 30%. Match Group argued that fines based on global turnover could serve as a strong deterrent against repeated violations. Apple countered that penalties should be limited to the revenue of the specific business unit involved in the alleged misconduct. To illustrate, it compared the situation to fining a stationery business for the turnover of its unrelated toy division.
Legal Perspectives and Industry Comparisons
Apple’s plea will be heard on December 3, with legal experts noting the challenge may be difficult to sustain. Gautam Shahi, a competition law partner at Dua Associates, said the amended law clearly empowers the CCI to consider global turnover. Similar provisions exist in the European Union, where companies can face fines of up to 10% of worldwide revenue for antitrust violations. The Indian case could set an important precedent for how penalties are applied in future disputes.
The broader debate reflects tensions between regulators seeking stronger enforcement tools and companies concerned about disproportionate financial risks. Apple insists that penalties tied to global turnover are unconstitutional and unjust. The outcome of the case may influence how multinational firms approach compliance in India’s growing digital economy. Observers expect the ruling to shape the balance between competition policy and corporate accountability.
India’s move to link penalties to global turnover mirrors trends in other jurisdictions. The European Union has already imposed multi-billion-dollar fines on companies such as Google under similar rules. Analysts suggest that India’s approach could signal a tougher stance on multinational technology firms operating in its market. If upheld, the law may encourage regulators worldwide to adopt comparable frameworks, raising the stakes for global corporations facing antitrust scrutiny.
