The Competition Commission of India has reached its breaking point with Apple's delaying tactics. After enduring more than a year of postponements, the antitrust regulator has delivered a final ultimatum to the iPhone manufacturer. Apple must respond by next week, or the investigation will proceed without its participation.
December Order Reveals Frustration
A confidential order dated December 31 contains the stern warning. According to Reuters, the document accuses Apple of undermining the investigation through repeated requests for extensions. What began as a routine procedural step in October 2024 has escalated into a full-blown bureaucratic standoff. Apple has chosen to disengage from the regulator's process while it contests the rules in a separate legal battle.
Billions in Potential Penalties
The stakes are enormous. The case could result in a potential fine of $38 billion against Apple. This figure represents one of the largest corporate penalties ever considered. The calculation stems from a 2024 regulatory change. This new rule allows authorities to base fines on a company's total global revenue, not just its earnings within India.
Apple's Constitutional Challenge
Apple is fighting back vigorously. The company is not accepting the regulator's position passively. In November, Apple filed a substantial 545-page constitutional challenge. The legal filing argues that the new penalty framework is fundamentally flawed. Apple calls the rules "manifestly arbitrary" and "grossly disproportionate."
To demonstrate its point, Apple offered a vivid comparison. It suggested the penalty logic is akin to punishing an entire toy company's business for violations found in just a single product line. The core dispute traces back to 2022. At that time, Match Group and several Indian startups filed complaints. They alleged that Apple abused its dominant position in the App Store marketplace.
Investigators' Findings
CCI investigators uncovered specific practices. Their findings indicate that Apple forces developers to use its proprietary in-app payment system. The company charges commissions as high as 30 percent on transactions. Furthermore, Apple reportedly blocks applications from even informing users about cheaper payment alternatives available outside the App Store ecosystem.
Legal Timelines Converge
Apple made a quiet request to the Competition Commission. It asked the regulator to pause the entire antitrust probe until the courts resolve the penalty dispute. The CCI rejected this appeal outright. Now, both sides are firmly entrenched in their positions. Apple intends to maintain its silence with the antitrust body until the Delhi High Court hears arguments on January 27.
Expert Analysis on Apple's Chances
Legal experts assessing the situation believe Apple faces significant challenges. The amended competition law explicitly permits the use of global turnover calculations for fines. This makes it difficult for any court to overturn what is now established legislative policy. The CCI's patience has evidently expired. The watchdog's final warning states clearly that "such indulgence cannot be continued indefinitely," signaling an end to further delays.
