Apple challenges CCI over global turnover fines, Delhi HC hearing on January 27
Follow UsApple has moved the Delhi High Court against a 2024 rule allowing fines based on global turnover; the case will be heard on January 27.
The regulator says global-based penalties are needed to deter large multinational firms and match international norms.
The ruling could shape how India enforces competition law on global tech companies.
India’s competition watchdog (the CCI) and Apple are fighting a legal battle in the Delhi High Court. The argument is about how much money a company should pay in fines if they break the rules. The dispute centres on a change made in 2024 to India’s competition law. Regulators say the update is needed so penalties remain strong enough for large global companies that earn most of their money outside India. Apple, however, says the rule is unfair and could lead to very heavy fines for actions that took place only in India. The court’s decision could affect how international companies judge legal and business risks in India’s fast-growing digital market.
SurveyIn a recent court filing, the Competition Commission of India said the updated law brings India in line with global norms already followed in regions such as the European Union. According to the regulator, relying only on India-specific revenue when calculating penalties often fails to discourage wrongdoing by large multinational companies, especially in digital markets where business operations cross borders easily.
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The CCI explained that fines calculated purely on the basis of local turnover may become so small as to have little actual effect on the turnover of very large companies worldwide. They further implied that this weakens enforcement and allows powerful firms to absorb fines as a routine cost of business. However, by linking penalties to global turnover, the regulator believes fines will carry enough weight to prevent future violations.
Apple, on the other hand, has raised serious concerns regarding the new amendment. In its petition, the company said that the law could result in disproportionate penalties and claimed it may face fines running into tens of billions of dollars. This follows a CCI investigation that found Apple had abused its dominant position in the app marketplace. However, Apple has bluntly denied the allegations and claimed that its business practices comply with Indian law.
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Apple accuses the regulator of unfairly using a new law to punish actions from the past, arguing this is legally wrong. They believe the new rules on calculating fines shouldn’t apply to older cases. However, the Competition Commission of India (CCI) denies this by stating that they have always had the power to fine companies up to 10% of their turnover.
The regulator also accused Apple of attempting to mislead the court, noting that it requested only India-specific financial data during the investigation. Apple counters that the broader definition of turnover still exposes it to significantly higher fines.
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The case is scheduled to be heard on January 27. Legal experts say the ruling could set a major precedent for how India enforces competition law against global corporations, potentially altering the balance between regulation and investment in the country’s digital economy.
