Apple has taken the unusual step of contesting India’s newly amended antitrust penalty framework before the Delhi High Court, arguing that the rule allowing fines to be calculated on the basis of worldwide turnover is unconstitutional and disproportionate. The move comes as the company faces mounting scrutiny in an ongoing competition case that could theoretically expose it to tens of billions of dollars in penalties.
The legal petition, detailed in a filing reviewed by Reuters, marks the first formal challenge to India’s 2024 amendments empowering the Competition Commission of India (CCI) to impose sanctions derived from a company’s global revenues. Apple contends that this approach fundamentally distorts the scale of any potential penalty relative to its activities in the Indian market. According to the filing, the ceiling for a penalty computed at 10% of its average global turnover over the last three years could reach roughly $38 billion.
These developments unfold against the backdrop of a broader dispute that began in 2022, when Match Group and several Indian startups accused Apple of abusing its position in the iOS app distribution ecosystem. A subsequent CCI investigative report concluded that Apple’s restrictions on third-party payment processors—combined with in-app fees of up to 30%—amounted to abusive practices under Indian competition law. Apple has consistently rejected the findings, and the regulator has yet to determine any penalty.
A key element of Apple’s court challenge centers on concerns about retroactive enforcement. The company points to a recent CCI decision earlier this month, where the amended penalty methodology was applied to conduct that occurred years before the law was revised. Apple argues that such backward-looking application leaves it vulnerable to severe and unjust penalties for conduct predating the legislative change.
In its petition, Apple asserts that fines should be linked to the turnover of the specific business segment implicated in the alleged infringement within India. It cites a hypothetical example to illustrate proportionality: penalizing a stationery arm for violations committed by a small toy division, it argues, would be illogical and excessive. Apple also maintains that despite strong recent growth—its Indian user base has quadrupled in five years—it remains a comparatively small player in a market dominated by Android devices.
Legal analysts suggest Apple faces an uphill battle. The amended law explicitly allows global turnover to be used in penalty calculations, and courts are generally reluctant to override clear legislative provisions. As competition specialist Gautam Shahi noted, the judiciary may be disinclined to intervene in what is essentially a policy choice made by lawmakers.
The High Court is expected to take up Apple’s petition on December 3. Neither Apple nor the CCI has commented publicly on the challenge.