Apple has taken legal action against the Indian government, challenging a new penalty formula that allows regulators to calculate antitrust fines using a company’s global turnover rather than limiting penalties to India-specific revenue. The petition, filed in the Delhi High Court, argues that the revised framework is unfair, excessive and inconsistent with constitutional principles.
According to a Reuters report, Apple’s challenge targets the 2024 amendments that updated how the Competition Commission of India assesses financial penalties. Apple is concerned that if the regulator applies the global turnover formula in its ongoing probe into the iOS app market, the fine could reach around 38 billion dollars based on its own estimates. The filing describes such a penalty as arbitrary, disproportionate and unjust, especially for conduct that is alleged to have taken place within India’s borders.
The dispute originates from a 2022 case brought by Match Group and several Indian startups, who accused Apple of abusing its dominant position through restrictive App Store rules. The Competition Commission later released a report supporting many of the allegations, though it has not yet issued a final decision or penalty. Apple’s move appears to be a pre-emptive attempt to prevent the global turnover formula from being used in any eventual ruling.
Legal experts say Apple is likely to face a challenging path. The 2024 amendments clearly empower the regulator to use global turnover, and courts generally avoid overruling explicit legislative policy. Competition law specialist Gautam Shahi told Reuters that persuading judges to block the rule may prove difficult for Apple.
The companies behind the original complaint argue the opposite. Match Group said the ability to impose penalties linked to global revenue is an essential deterrent in digital markets where large firms operate across multiple jurisdictions. They believe the rule is necessary to ensure accountability and prevent repeat violations.
The case is scheduled for a hearing next week and is expected to become a significant test of India’s new competition framework.
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