Key Points
- Apple is suing India’s competition regulator, the CCI, in the Delhi High Court.
- The lawsuit challenges a new law that calculates fines based on a company’s global revenue.
- Apple faces a potential penalty of up to $38 billion under this new rule.
- The CCI is already investigating Apple over its App Store commission policies following developer complaints.
Apple is taking India’s competition regulator to court over a new law that could impose a staggering fine of up to $38 billion on the iPhone maker. The tech giant filed a case in the Delhi High Court, arguing that the way the country’s antitrust body calculates penalties is unfair and illegal.
The core of the issue is a new Indian law that allows the Competition Commission of India (CCI) to base fines on a company’s total global sales, rather than its revenue in India. Apple slammed this method in its filing, calling it “unconstitutional, grossly disproportionate, and unjust.”
This legal battle comes as the CCI is already investigating Apple. Complaints from Indian startups and Tinder-owner Match Group triggered the probe. They accuse Apple of abusing its power by forcing developers to use its in-app payment system, which comes with high commissions.
While Apple denies the charges, the CCI has already issued a preliminary finding that Apple’s rules restrict app developers’ choice.
The lawsuit creates a tricky situation for Apple, which is experiencing explosive growth in India. The company just had its best-ever quarter in the country, shipping 5 million iPhones, and is expected to sell around 15 million this year.
This boom is part of Apple’s larger strategy to rely less on China. The company is rapidly expanding its manufacturing base in India, with exports from the country hitting a record $12.8 billion in 2024. While investing billions to expand its presence, Apple is also fighting a legal battle that could cost it dearly.
