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ISLAMABAD: Apple has mounted a major legal pushback against India&rsquo;s updated competition penalty framework, filing a petition in the Delhi High Court to contest the 2024 amendment that lets regulators levy fines based on a company&rsquo;s global turnover, Indian media reported.&nbsp;According to Indian news outlets, including India Today, the case could set a benchmark for how India regulates multinational tech giants.&nbsp;Apple calls India&rsquo;s new penalty rule unconstitutionalIndian media reports say Apple&rsquo;s 545-page petition asks the Delhi High Court to declare the 2024 amendment &ldquo;illegal&rdquo; and &ldquo;unconstitutional.&rdquo; &nbsp;The rule empowers the Competition Commission of India (CCI) to calculate fines using a firm&rsquo;s worldwide turnover, not just its Indian revenue.&nbsp;Apple argues the method is &ldquo;manifestly arbitrary&rdquo;, &ldquo;grossly disproportionate&rdquo; and could result in fines of up to $38 billion.&nbsp;The challenge comes amid a CCI investigation triggered by complaints from Match Group and Indian startups, alleging Apple restricts third-party payments and charges up to 30% commission on in-app purchases. &nbsp;Apple denies the allegations, saying iOS is a secure platform and that Android dominates India&rsquo;s market.&nbsp;Apple fears the law may be applied retroactivelyAs per media reports, Apple cited a recent case where the CCI applied the global-turnover principle to conduct from almost a decade ago. &nbsp;Apple says this forced it to file the constitutional challenge to avoid similar treatment in its ongoing case.&nbsp;To illustrate, Apple compared it to penalizing the entire turnover of a stationery shop for a violation committed only by its toy business.&nbsp;Regulators and legal experts defend the amendmentAccording to experts quoted in Indian media, Apple faces a difficult legal fight. &nbsp;Competition lawyers say the amendment clearly authorizes the CCI to consider global turnover, aligning India with EU-style antitrust practices. &nbsp;Government officials argue the law is designed to prevent global corporations from escaping proportionate penalties.&nbsp;Apple&rsquo;s rising footprint in India increases scrutinyIndian media reports cite research showing Apple&rsquo;s smartphone base in India has quadrupled in five years, boosted by local manufacturing and premium demand. &nbsp;With Apple increasingly important in India&rsquo;s digital economy, regulators are watching it more closely.The Delhi High Court will hear Apple&rsquo;s plea on December 3. &nbsp;If the company loses, it could face one of India&rsquo;s largest-ever corporate fines and set a precedent allowing global turnover to become the new penalty benchmark for tech multinationals operating in India.

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According to Indian news outlets, the case could set a benchmark for how India regulates multinational tech giants.

Articles tagged with "Delhi High Court"

Apple challenges India’s antitrust law that could cost it $38B fine: reports

Apple challenges India’s antitrust law that could cost it $38B fine: reports