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Apple Challenges India’s New Antitrust Penalty Law, Warns of Potential $38 Billion Fine

Apple has filed a legal challenge against India’s amended antitrust penalty law, under which the U.S. tech giant could face fines of up to $38...

Nov 27
3 min read
Apple Challenges India’s New Antitrust Penalty Law, Warns of Potential $38 Billion Fine

Apple has filed a legal challenge against India’s amended antitrust penalty law, under which the U.S. tech giant could face fines of up to $38 billion, according to a 545-page Delhi High Court filing reviewed by Reuters.

This marks the first-ever challenge to India’s new penalty framework, introduced in 2024, which empowers the Competition Commission of India (CCI) to calculate fines based on a company’s global turnover, not just its Indian revenue. The rule aims to strengthen deterrence in cases of market abuse.

Apple vs India’s Antitrust Regulator

Apple is currently under investigation in India following complaints from Match Group (parent of Tinder) and several Indian startups. CCI investigators last year accused Apple of “abusive conduct” in the iOS app market, particularly over its in-app purchase system, which mandates Apple’s own payment mechanism and charges up to 30% commission.

Apple has denied any wrongdoing, and the CCI has yet to issue a final ruling or decide on penalties.

However, Apple argues the new law puts it at unprecedented financial risk.

Apple’s Argument: ‘Unconstitutional and Disproportionate’

In its court filing, Apple says the amended penalty rule is:

  • “Manifestly arbitrary”

  • “Unconstitutional”

  • “Grossly disproportionate”

  • “Unjust”

The company calculates that based on the CCI’s power to levy penalties up to 10% of global turnover, its maximum exposure could be $38 billion — derived from Apple’s average worldwide revenue over the past three fiscal years.

Apple argues that penalties should be based only on the Indian revenue of the specific unit or segment found to be in violation.

The filing compares the situation to penalizing a toy seller’s stationery business:

“It would be arbitrary and disproportionate to levy a penalty on the stationery business’s total turnover of 20,000 rupees when the contravention relates only to the toy business earning 100 rupees.”

Why the Challenge Now?

Apple says it is compelled to challenge the law after the CCI used global turnover calculations for the first time on November 10, applying them retrospectively in an unrelated case involving violations dating back more than a decade.

Fearing similar retrospective application, Apple argues it has “no choice” but to seek judicial intervention.

The Bigger Picture

  • The European Union also imposes antitrust fines based on global turnover.

  • India’s smartphone market is dominated by Android, and Apple argues it is a “small player” in comparison.

  • Still, Apple’s user base in India has quadrupled in five years, per Counterpoint Research.

  • Match Group has countered that global-turnover-based fines are necessary as they are a “significant deterrent against recidivism.”

Competition law experts say Apple faces an uphill legal battle.

“The amended law is clear that CCI can consider global turnover,” said Gautam Shahi, partner at Dua Associates. “It will be difficult to convince the court to interfere with clearly laid down legislative policy.”

What Happens Next?

Apple’s petition will be heard on December 3 in the Delhi High Court.
Neither Apple nor the CCI has commented publicly.