Apple has opened a major front in its global regulatory battles, this time in India. The iPhone maker has moved the Delhi High Court against a new antitrust penalty rule that could expose it to one of the heaviest fines ever imposed in the country.
At the centre of the dispute is a significant shift in India’s competition law, one that could rewrite how global tech companies are penalised in the world’s fastest-growing digital market. Below is a clear breakdown of what’s happening, why Apple is fighting back, and what it means for India’s tech ecosystem. A new rule that hits the world’s biggest tech companies In 2024, India amended its competition law to give the Competition Commission of India (CCI) a powerful new tool: the ability to calculate penalties based on a company’s global turnover, not just its India earnings.
For a company like Apple, whose India revenue is small compared to its global business, this dramatically raises the stakes. In its 545-page petition, Apple has called the rule: Illegal, unconstitutional, arbitrary, and grossly disproportionate. The company argues that a penalty meant for a local violation should not be linked to global earnings, especially when those earnings come from business segments unrelated to the alleged violation. Also read: Apple could reclaim No.1 spot, overtaking Samsung after decade
Why Apple says the rule is unfair Apple argues that India should only fine companies based on revenue from the business activity being investigated, not the entire company’s worldwide earnings. To explain its point, Apple gave a simple example: If a toy shop breaks a rule, you can’t fine the stationery shop owned by the same person. But under the new law, Apple says that’s exactly what could happen. Apple has strongly denied wrongdoing, saying iOS offers a safe and fair marketplace and pointing out that Android dominates India’s smartphone sector, not Apple. Why Apple filed the case now Apple told the court that it was forced to act after the CCI applied the new penalty rule retroactively in a separate case on 10 November, even though the alleged violations in that case happened almost a decade earlier. Apple said that set off alarm bells. The company argued: We had no choice but to challenge the constitutionality of this rule now. Apple believes that if the new rule is applied to its ongoing investigation, the fine could legally reach 10% of its global average turnover, a number it estimates at around $38 billion (Rs 3.39 lakh crore).
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Experts say Apple may have a tough fight Legal experts believe the courtroom challenge will not be easy. Competition lawyers say the amendment clearly allows the CCI to consider global turnover and that Indian courts generally avoid interfering with legislative policy unless it violates core constitutional provisions. Government officials argue that India’s change brings its law closer to European Union-style competition enforcement, which also uses global turnover to calculate penalties, especially in cases involving dominant multinational firms. Apple’s growing footprint means stricter scrutiny Apple has often positioned itself as a smaller player in India, but numbers tell a different story. According to Counterpoint Research: This growth means Apple is now facing far more regulatory attention than before. What was once a small market in its global portfolio is becoming a strategic region.
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What happens next Apple’s petition will be heard in the Delhi High Court on December 3. The outcome will be closely watched because it will determine: If Apple loses, the case could become a precedent for other global companies operating in India, from Google and Amazon to Meta and Samsung.
For India, the ruling could shape the future of its competition enforcement in a rapidly growing digital economy.
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