Apple Challenges India’s Antitrust Law to Block Potential $38 Billion Fine

Apple is contesting a new Indian antitrust law. The tech giant filed a legal challenge in the Delhi High Court. This move aims to block a potential massive fine in an ongoing case.

According to Reuters, Apple argues the law is unconstitutional. The law allows regulators to calculate fines based on a company’s global turnover. This could lead to a penalty of nearly $38 billion for Apple.

Legal Battle Centers on Fairness of Penalty Calculation

India passed the contested law last year. It empowers the Competition Commission of India (CCI) to use worldwide revenue for fines. Penalties can reach up to 10% of this global turnover.

Apple calls this approach “grossly disproportionate.” The company suggests fines should be based only on relevant Indian revenue. It argues its small market share in India, dominated by Android, makes a global-based fine unjust.

Case Rooted in App Store Dispute with Dating App Maker

The underlying case began in 2022. Dating app company Match and Indian startups filed an antitrust complaint. They alleged Apple abused its market dominance with its App Store rules.

The CCI’s initial reports sided with the developers. It stated Apple’s in-app purchase mandate was “abusive conduct.” Those reports were later recalled for containing confidential data, delaying the final ruling.

Apple Acts to Prevent Retrospective Penalty Application

Apple felt compelled to act now. The company stated the CCI used the new law in an unrelated case on November 10. This set a precedent Apple wants to overturn.

Apple’s filing said it had “no choice” but to challenge the law. It seeks to avoid retrospective penalties being applied to its own case. The court will hear Apple’s plea on December 3.

The outcome of Apple’s constitutional challenge could reshape how global tech giants are regulated in India, setting a critical precedent for future antitrust enforcement.

Dropping this nugget your way

What is the main reason for Apple’s legal challenge?

Apple is challenging an Indian law that lets regulators base fines on a company’s total global revenue. The company argues this is unfair and disproportionate for its operations in India.

How much could the fine against Apple be?

The potential fine could be up to 10% of Apple’s global turnover. This amounts to approximately $38 billion, a massive financial penalty.

What was the original antitrust case about?

Match and other app developers accused Apple of anti-competitive behavior. The dispute centers on Apple’s requirement that developers use its proprietary in-app payment system.

When will the court hear Apple’s case?

The Delhi High Court is scheduled to hear Apple’s plea on December 3. This hearing will address the legality of the penalty law itself.

Why does Apple believe the fine is unjust?

Apple points to its small market share in India’s smartphone sector. The company believes penalties should reflect its local business scale, not its worldwide success.