![The challenge is the first against India’s antitrust penalty law that since last year allows the Competition Commission of India (CCI) to use global turnover when calculating the penalties it imposes on companies [File] | Photo Credit: REUTERS](https://newspage360.com/wp-content/uploads/2025/11/Apple-expands-AGK0F6JVQ9.5.jpg-1068x601.jpg "The challenge is the first against India’s antitrust penalty law that since last year allows the Competition Commission of India (CCI) to use global turnover when calculating the penalties it imposes on companies [File] | Photo Credit: REUTERS")
Apple Challenges India’s $38 Billion Antitrust Fine Risk
Apple has filed a legal challenge against India’s new antitrust penalty law that could potentially expose the company to a massive $38 billion fine. The case, filed at the Delhi High Court, marks the first constitutional challenge to India’s 2024 law allowing regulators to calculate penalties based on global turnover.
Key Takeaways
- Apple faces potential $38 billion fine under India’s new antitrust law
- Legal challenge targets CCI’s power to use global turnover for penalty calculations
- Case represents first constitutional challenge to India’s 2024 antitrust amendments
- Hearing scheduled for December 3 at Delhi High Court
The Core Legal Battle
Apple is asking judges to declare illegal the 2024 law that permits the Competition Commission of India (CCI) to use a company’s global turnover, not just Indian revenue, when calculating antitrust penalties. According to Apple’s 545-page court filing, the company’s “maximum penalty exposure” could reach approximately $38 billion – representing 10% of its average global turnover from services over three fiscal years ending in 2024.
Apple argued that such a “penalty based on global turnover…would be manifestly arbitrary, unconstitutional, grossly disproportionate, unjust.” The company maintains it had “no choice but to bring this constitutional challenge now to avoid retrospective imposition of penalty.”
Background of the Dispute
The legal challenge comes amid an ongoing antitrust battle between Apple and various parties including Tinder-owner Match and Indian startups at the CCI. Investigators previously issued a report alleging Apple engaged in “abusive conduct” in its iOS app market. Apple has denied all wrongdoing, and the CCI has yet to make a final decision in the case.
Apple cited the CCI’s first use of the new rules on November 10 in an unrelated case, where they were applied retrospectively to a violation dating back a decade.
Market Position Arguments
Apple has consistently maintained it’s a minor player compared to Google’s Android, which dominates the Indian smartphone market. However, Counterpoint Research data shows Apple’s smartphone base in India has quadrupled over the past five years, indicating growing market presence.
The CCI found last year that Apple wasn’t permitting third-party payment processors for in-app purchases, where fees could reach 30%. In contrast, Apple opponent Match argued in a private submission that fines based on global turnover could “act as a significant deterrent against recidivism.”
Apple’s Proposed Alternative
In its filing, Apple argued India should only impose penalties based on the Indian revenue of the specific business unit violating antitrust laws. The company provided an analogy: if a stationery business also sells toys, and the violation occurs only in the toy business generating 100 rupees, it would be disproportionate to penalize the entire stationery business turnover of 20,000 rupees.
Legal Expert Opinion
Gautam Shahi, competition law partner at Dua Associates, commented: “Amended law is clear that CCI can consider global turnover. It will be difficult to convince the court to interfere with clearly laid down legislative policy.”
The case is scheduled for hearing on December 3, setting the stage for a landmark decision on India’s antitrust enforcement powers.
