Apple is presently challenging a recently introduced antitrust penalty framework in India that could greatly affect its financial responsibilities. The corporation has initiated a constitutional lawsuit in the Delhi High Court opposing the 2024 regulations that empower the Competition Commission of India (CCI) to determine fines based on a company’s worldwide income rather than its domestic earnings. This legal move stems from an ongoing inquiry that began in 2022, triggered by grievances from Match Group and regional startups, which claim that Apple has exploited its dominant status in the iOS application marketplace.
Reports indicate that the potential penalties could amount to as much as $38 billion, calculated at 10% of Apple’s average worldwide revenue from its services over the three fiscal years leading up to 2024. Apple asserts that this penalty framework is “manifestly arbitrary, unconstitutional, grossly disproportionate, unjust,” and is seeking a declaration that the law is illegal. The company argues that utilizing a global revenue basis for penalties is excessive and does not accurately represent its operations in India.
The CCI has yet to deliver a final decision or impose any fines, but Apple is striving to proactively challenge the updated formula before it is enforced. The case is scheduled to be heard soon, and legal analysts suggest that Apple may encounter challenges in convincing the court to overturn a clearly established legislative policy that allows the CCI to factor in global turnover in its assessments.
Conversely, Match Group endorses the new penalty system, contending that it may act as a considerable deterrent against future infractions by large corporations. The resolution of this case could have extensive ramifications for the manner in which antitrust penalties are evaluated in India and possibly shape global benchmarks for corporate accountability.
