Industry observers say Apple’s challenge may face obstacles.
Apple has taken the Indian government to court over a new antitrust penalty framework that allows fines to be calculated on a company’s global turnover rather than its India revenue. The company has filed a constitutional challenge in the Delhi High Court, arguing that the revised formula is unfair, disproportionate, and violates legal principles.
According to a Reuters report, Apple’s petition targets the 2024 amendments that updated how the Competition Commission of India determines financial penalties in antitrust cases. The company fears that if the Competition Commission applies the global turnover rule in its ongoing probe into the iOS app market, the penalty could reach nearly 38 billion dollars based on Apple’s own calculations.
The filing states that a penalty based on worldwide earnings is “manifestly arbitrary, unconstitutional, grossly disproportionate, and unjust.” Apple argues that using global revenue for a dispute focused on India would create excessive punitive exposure and set a harmful precedent for multinational companies operating in the country.
This legal action stems from a case that began in 2022, when Match Group and several Indian startups accused Apple of abusing its dominant position by imposing restrictive App Store policies. The Competition Commission later issued a report supporting many of those allegations. No final ruling or penalty has been issued yet, but the risk of the new penalty formula being applied has prompted Apple to move proactively.
Industry observers say Apple’s challenge may face obstacles. Legal experts note that the 2024 amendments explicitly permit the Competition Commission to use global turnover in its assessments, and courts usually avoid interfering with clear legislative policy. Competition law partner Gautam Shahi told Reuters that Apple will likely have a difficult time convincing judges to block the rule.
However, companies that filed the original complaint see the revised penalty structure as necessary. Match Group told Reuters that global turnover penalties could act as a strong deterrent against repeat violations in digital markets where companies operate across multiple countries.
The case is scheduled for a hearing next week and is expected to become a major legal test of India’s updated competition regime.
The article originally appeared on Hindustan Times
