Apple has moved the Delhi High Court to contest India’s revised antitrust penalty system, which allows the Competition Commission of India (CCI) to impose fines based on a company’s worldwide revenue.
This change, introduced under the Competition (Amendment) Act, 2023, could expose the company to a penalty of up to $38 billion (around Rs. 3.4 lakh crore) if the ongoing investigation goes against it.
The amended law was passed in April 2023. It introduced a provision that lets the CCI calculate penalties using global turnover rather than only a company’s India earnings. The rule came into force in March 2024 through a government notification. The law also permits penalties of up to 10 percent of a company’s global turnover, spread over three financial years. Apple is challenging this clause.
Apple has filed a 545-page petition asking the Delhi High Court to strike down the law.
The petition calls the penalty framework “grossly disproportionate,” “arbitrary,” and “unconstitutional.”
It also notes that Apple’s maximum exposure at 10 percent of global turnover could reach $38 billion. Apple has raised concerns about the amendment being used retrospectively. It reportedly points out that the CCI applied the global turnover formula in at least one older case involving conduct from ten years earlier.
Apple argues that penalties should be linked only to revenue generated in India or to the specific business unit being investigated. The company has also repeated its long-standing claim that it is a smaller player in India compared to Android manufacturers.
The petition follows a CCI investigation that began in 2021. The probe looked into Apple’s App Store rules. A confidential CCI report in July 2024 described Apple’s requirement to use its in-app payment system and its limits on third-party billing as an “abusive conduct.” Apple has rejected the findings. The company has reportedly told the authorities that developers in India have several other ways to distribute their apps.
The case is scheduled to be heard by a division bench of the Delhi High Court on December 3. No stay or interim relief has been granted so far.