Apple challenges India antitrust rule that could trigger $38b fine

Apple is contesting India’s new antitrust penalty law, which could expose the company to a fine of up to US$38 billion, according to a court filing seen by Reuters.

The law, enacted in 2024, allows India’s Competition Commission (CCI) to use a company’s global turnover, rather than only Indian revenue, when calculating penalties for market abuse.

Apple is seeking a Delhi High Court ruling to declare this law illegal, arguing that penalties based on worldwide turnover are arbitrary and disproportionate.

The CCI has not made a final decision in the ongoing antitrust case against Apple, which began after complaints from Match Group and Indian startups about Apple’s app market practices.

Apple’s filing claims the company is a minor player in India compared to Google’s Android, though research firm Counterpoint said Apple’s user base in India has quadrupled over five years.

The High Court is set to hear the case on December 3.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

India’s global-turnover penalty law and its retrospective use could reshape how global tech faces antitrust enforcement

India’s 2024 law lets fines be based on worldwide turnover, and the Competition Commission of India (CCI) used it on Nov. 10 for a decade-old violation 1.
Apple asked the Delhi High Court to bar use of “global turnover” and wants fines tied to the Indian revenue of its local unit 1. The law caps penalties at 10% of turnover, and Apple estimates liability at about $38 billion if worldwide sales are used 1.
Apple says it filed now to avoid retroactive penalties after the CCI used the new rules on Nov. 10 2. The amendments took effect in March 2024 2.
An Indian competition law partner said the amended law permits using global turnover, so winning a court challenge to that policy will be hard 1.

Payment processors could gain if Apple opens iOS billing in India

The CCI found last year that Apple blocked third-party payment processors for in-app purchases while charging fees up to 30% 1.
If regulators require Apple to allow alternative billing on iOS in India, payment providers and billing platforms could gain by offering Unified Payments Interface (UPI) integration, Goods and Services Tax (GST)-compliant invoicing, or other local services for developers.
South Korea in 2021 required Apple and Google to allow alternative payment systems in their app stores, which offers a reference point for India’s case 3.