Apple Moves Delhi HC To Challenge India’s Antitrust Penalty Rules

iPhone-maker Apple has reportedly moved the Delhi High Court to challenge antitrust laws, which allow the Competition Commission of India (CCI) to calculate fines based on a company’s global turnover.

According to a Bar and Bench report, Apple is opposing amendments made in 2023 to Section 27(b) of the Competition Act and the CCI’s 2024 guidelines on determining penalties. The company has named India’s Union Government and the CCI as respondents.

Notably, under Section 27(b), the CCI can impose fines of up to 10% of an entity’s average turnover over the past three financial years if the company is found to have abused its dominant position or engaged in anti-competitive practices. 

On the other hand, the 2024 guidelines specify that “turnover” includes global revenue, which could significantly increase penalties for the Cupertino-based big tech juggernaut.

A division bench of the Delhi High Court will hear the case later today.

This is not Apple’s first encounter with the competition watchdog. The CCI, previously in 2021, began a probe into allegations that Apple abused its dominant position in the app marketplace and forced developers to use its in-app payments system, which charges commissions of up to 30%. The investigation, spanning over three years, has since been marred in disputes.

In August 2024, the CCI ordered a recall of investigation reports after Apple claimed the watchdog had disclosed commercial secrets to competitors, including Tinder-owner Match. 

Apple had also requested that the main complainant, Together We Fight Society (TWFS), be penalised for failing to destroy earlier investigation reports, but the CCI rejected the plea and allowed the probe to continue.

Later, the CCI set up a “confidentiality ring”, following which Apple submitted its audited financial statements for FY22, FY23 and FY24 as part of the penalty assessment process. Apple has consistently denied wrongdoing, arguing that it is a minor player in India’s smartphone market, where Android dominates.

That said, Apple is part of a growing list of global big tech companies under CCI’s scrutiny. Earlier in 2022 , the watchdog slapped penalties to the tune of over INR 2,200 Cr on Google for abusing its dominant position in the Play Store and Android device market.

It also levied a fine of INR 213.14 Cr on Meta last year for anti-competitive practices connected to WhatsApp’s 2021 privacy policy update.

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