The Delhi High Court is currently presiding over a significant petition filed by Apple Inc., challenging recent amendments to India's Competition Act. A division bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela has taken up the case, which disputes the antitrust regulator Competition Commission of India's (CCI) amended power to impose penalties on companies for violations based on their global turnover, rather than solely on their India-specific revenue.

Apple argues that the 2023 amendment to Section 27(b) of the Competition Act and the subsequent 2024 Monetary Penalty Guidelines, which allow fines up to 10% of a company's average global turnover over the past three financial years, are "manifestly arbitrary, unconstitutional, grossly disproportionate, and unjust." The tech giant highlighted that such a provision could potentially put $38 billion, or 10% of its global turnover, at risk if applied to its ongoing App Store antitrust probe. Apple further contended that imposing penalties based on global turnover for conduct limited to India is unreasonable, especially given that the alleged behavior relates to only a small fraction of its worldwide business. The company also raised concerns about the retrospective application of these new rules, citing an instance where the CCI applied them to a decade-old violation, and argued that this contradicts the Supreme Court's 2017 Excel Crop Care ruling, which stipulated that penalties should be based on relevant turnover.

During the proceedings, Apple's counsel, Abhishek Manu Singhvi, sought interim protection from coercive steps and expressed difficulty in submitting financial details by the December 8 deadline set by the CCI, stating that the data was not publicly disclosed in India and required collation. However, the Delhi High Court declined to issue any interim orders regarding Apple's plea for protection or the submission of financial details, stating it did not wish to express a view at this stage. Instead, the court issued notices to the Union government and the CCI, directing them to file an affidavit within a week explaining the rationale behind the global turnover penalty framework. The matter is scheduled for a subsequent hearing on December 16.

The CCI, represented by Senior advocate Balbir Singh, countered Apple's petition by accusing the company of attempting to delay the ongoing antitrust proceedings. Singh argued that the investigation into Apple's App Store payment policies is complete, the Director General’s report has been sent to Apple, and the company should respond rather than seek to stall the process. He emphasized that the CCI had only requested India turnover, not global turnover, and that fears of massive global turnover-based penalties were overstated. Singh clarified that global turnover is considered only as a last resort, primarily to ensure jurisdiction over entities with no or minimal turnover in India or those operating from outside the country, especially when companies fail to provide sufficient relevant financial information.

The current legal challenge stems from an antitrust investigation initiated between 2021 and 2022 following complaints from NGOs, Indian startups, and Match Group (owner of Tinder, Hinge, and OkCupid). These complaints alleged that Apple abused its dominant position by mandating developers to use its in-app payment system and imposing commissions of up to 30%. The CCI found prima facie evidence of abuse, a finding Apple has consistently denied.

This case is poised to be a critical test for how India's new penalty framework will be applied to large multinational tech firms, potentially setting a significant precedent for future antitrust regulations in one of the world's fastest-growing digital markets. Approaches to determining penalties vary globally; while the US often favors structural remedies, the EU typically calculates fines based on revenue linked to the specific market, as seen with Google's Android search services fine and Apple's 2024 fine. Apple's business in India, while significantly smaller than in Europe, is experiencing rapid growth, driven by strong demand for iPhones, with a 28% share of the country's premium smartphone market by value and projected sales of 15.5 million iPhones in 2025.