$38 Billion at Stake: Why Apple Is Dragging India’s Antitrust Law to Court
Under the new rule, CCI can fine Apple based on its global turnover, and the fine can reach up to $38 billion because...
Apple approached the Delhi High Court to challenge a new Indian law that could impose huge antitrust (competition law) penalties on companies. This new rule can calculate penalties based on a company’s global turnover, not just what it earns in India. Now, this law can make Apple (being a global giant) pay $38 billion if it is found guilty of abusing its market power. India’s Competition Commission (CCI) is still investigating the issue, and here's what could happen. Learn more.
Why Is Apple Worried?
Match (the company behind Tinder) and some other Indian startups alleged that:
- Apple abuses its power on IOS.
- The company won't allow any third-party payment apps inside iPhone apps for in-app purchases.
- The developers are forced to use Apple’s own payment system, which charges them up to 30% fees.
- Well, in 2024, CCI investigators found that Apple engaged in "abusive conduct,” but the CCI still hasn’t issued its final decision or penalty.
- And as of now, CCI can use the new rule that allows it to calculate fines based on global revenue.
- In Apple's case, 10% of its global turnover (worldwide earnings) over 3 years could be around $38 billion.
So Apple is saying:
“This law is unfair, unconstitutional, and the fine would be too huge and unreasonable.”
What Exactly Is Apple Challenging?
Apple outright wants the court to declare the 2024 law invalid because:
- It can now use the global turnover to calculate the fines.
- If charged, Apple wants the penalty to be calculated on the Indian business unit that violated the law.
Here's one instance that Apple gave:
Let's say a company sells toys with a turnover of INR 100 and also runs a stationery business with a turnover of INR 20,000. And a violation happened in the toy business. The only unit that should be penalised is the toy business, not the entire company's turnover. It sounds unfair, they say.
Why Is This Important Now?
According to Apple, it had to challenge the law immediately because:
- CCI applied the new global turnover rule from November 10 (for the first time ever).
- This applies retroactively to violations that occurred 10 years ago.
What's Next For Apple?
Apple’s petition will be heard in court on December 3, 2025.
A competition law expert said:
"The law clearly allows CCI to use global turnover. It may be very hard for Apple to convince the court to change a law that is so clearly written."
Final Thoughts...
Such global penalties are common. Regulators, such as the European Union, can fine companies up to 10% of their global turnover for competition violations.
Yash Gupta
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