Apple Takes India to Court Over $38B Antitrust Law
Apple is challenging a new Indian law that could expose it to massive antitrust fines, potentially reaching $38 billion. The dispute stems from the Competition Commission of India’s (CCI) ability to calculate penalties based on global turnover—a move Apple calls “arbitrary and unconstitutional.” The tech giant is now asking Delhi’s High Court to block the law and argue that fines should only reflect the Indian revenue of the units involved.
The Law That Could Cost Apple Billions
Last year, India passed a law granting the CCI authority to consider global revenue when penalizing companies for market dominance abuses. For Apple, this could translate to a staggering 10 percent of its worldwide revenue, amounting to roughly $38 billion. Apple claims that applying global turnover is "grossly disproportionate and unjust," emphasizing that it has only a small share of India’s smartphone market.
Ongoing Antitrust Battle with Match and Indian Startups
Apple has been under antitrust scrutiny in India since 2022, linked to lawsuits involving dating app Match and multiple Indian startups. The CCI alleges that Apple engaged in “abusive practices” by mandating its in-app purchase system for developers. However, Apple maintains that its policies are standard industry practices and denies any wrongdoing.
Investigations Hit Roadblocks Over Confidential Data
Last year, the CCI had to withdraw some investigative reports after inadvertently disclosing confidential information about Apple’s business operations. This breach delayed proceedings by several months, leaving the case unresolved. Apple has seized on these procedural missteps to question the fairness and legitimacy of the antitrust process.
Apple’s Argument for India-Only Revenue Fines
Apple argues that any penalties should be based strictly on revenue generated in India rather than global earnings. The company contends that calculating fines on worldwide revenue is both excessive and legally questionable. Lawyers for Apple are pressing the Delhi High Court to recognize this distinction, potentially reshaping how multinational companies are penalized in India.
Market Share and Competitive Context
Apple highlights that Android devices dominate the Indian market, with iPhones holding only a minor portion. This small market share, Apple claims, undermines allegations of abusive market dominance. The company insists that its business practices are fair and transparent, and it continues to challenge the logic behind the proposed penalties.
Implications for Global Tech Firms
If India’s law stands, it could set a precedent affecting not only Apple but other global tech companies operating in the country. Critics warn that the legislation may expose firms to fines disproportionate to their local operations, creating uncertainty in the Indian tech market. Meanwhile, Apple’s legal challenge could slow down enforcement and spark wider debates about fair regulatory practices.
What Comes Next in the Legal Battle
Delhi High Court has yet to issue a ruling, and Apple continues to push for a judgment in its favor. The outcome could have far-reaching consequences for antitrust law enforcement in India, potentially influencing global approaches to corporate regulation. As the case unfolds, all eyes are on whether India will maintain its stance on global turnover-based fines or revise its framework.
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