Apple challenges India’s antitrust law that could cost it $38B fine: reports

ISLAMABAD: Apple has mounted a major legal pushback against India’s updated competition penalty framework, filing a petition in the Delhi High Court to contest the 2024 amendment that lets regulators levy fines based on a company’s global turnover, Indian media reported.

According to Indian news outlets, including India Today, the case could set a benchmark for how India regulates multinational tech giants.

Apple calls India’s new penalty rule unconstitutional

Indian media reports say Apple’s 545-page petition asks the Delhi High Court to declare the 2024 amendment “illegal” and “unconstitutional.”

 The rule empowers the Competition Commission of India (CCI) to calculate fines using a firm’s worldwide turnover, not just its Indian revenue.

Apple argues the method is “manifestly arbitrary”, “grossly disproportionate” and could result in fines of up to $38 billion.

The challenge comes amid a CCI investigation triggered by complaints from Match Group and Indian startups, alleging Apple restricts third-party payments and charges up to 30% commission on in-app purchases.

 Apple denies the allegations, saying iOS is a secure platform and that Android dominates India’s market.

Apple fears the law may be applied retroactively

As per media reports, Apple cited a recent case where the CCI applied the global-turnover principle to conduct from almost a decade ago.

 Apple says this forced it to file the constitutional challenge to avoid similar treatment in its ongoing case.

To illustrate, Apple compared it to penalizing the entire turnover of a stationery shop for a violation committed only by its toy business.

Regulators and legal experts defend the amendment

According to experts quoted in Indian media, Apple faces a difficult legal fight.

 Competition lawyers say the amendment clearly authorizes the CCI to consider global turnover, aligning India with EU-style antitrust practices.

 Government officials argue the law is designed to prevent global corporations from escaping proportionate penalties.

Apple’s rising footprint in India increases scrutiny

Indian media reports cite research showing Apple’s smartphone base in India has quadrupled in five years, boosted by local manufacturing and premium demand.

 With Apple increasingly important in India’s digital economy, regulators are watching it more closely.

The Delhi High Court will hear Apple’s plea on December 3.

 If the company loses, it could face one of India’s largest-ever corporate fines and set a precedent allowing global turnover to become the new penalty benchmark for tech multinationals operating in India.