Apple is suing the Delhi High Court in India to overturn the revised antitrust fines rule implemented in 2024. Under the rule, Apple could potentially face fines of up to $38 billion.
This lawsuit marks the first challenge by a company against India’s new antitrust fine system. According to the amendment that came into effect in India in 2024, the Competition Commission of India (CCI) can now calculate fines on companies based on their “global revenue” rather than just their revenue from Indian operations.
In a 545-page filing, Apple argues that calculating fines based on global revenue is “arbitrary, unconstitutional, disproportionate to the violation, and unfair,” and is asking the court to declare that part of the law invalid.
Apple estimates that if fines were to be imposed at an average of 10% of global revenue as stipulated, the maximum fine for its three-year average global revenue from 2022 to 2024 would be around $38 billion.
Apple points out that CCI invoked the new law for the first time on the 10th of this month in another case, applying the “global revenue” fine mechanism retroactively to violations from ten years ago. Apple states that to avoid potential retroactive fines in this case, they have to challenge the law at a constitutional level in advance.
Since 2022, dating app giant Match Group and several Indian startups have filed complaints with CCI regarding Apple’s behavior in the iOS app market.
Last year, a CCI investigation report highlighted Apple’s “abuse of dominance” in the app market, particularly in banning third-party payment tools, requiring the use of its App Store’s in-app purchase system, and charging a maximum of 30% commission.
Apple denies any wrongdoing and emphasizes that compared to Google’s Android system, which dominates the Indian market, their market share in India is relatively small. However, data from market research firm Counterpoint shows that Apple’s user base in India has quadrupled in the past five years.
Match, in support of the new law, submitted opinions to CCI stating that calculating fines based on global revenue can create “significant deterrence” against repeat offenses by companies.
In its lawsuit, Apple uses the analogy of a “toy store doubling as a stationery shop,” arguing that if a violation only occurs in the toy business generating 100 rupees in revenue, but the fine is calculated based on the overall revenue of the stationery business at 20,000 rupees, it would result in a “disproportionate and unreasonable” punishment.
The case is scheduled to be heard in court on December 3.
(This article was based on a report by Reuters)