Technology giant Apple has launched a legal challenge against India's updated competition regulations that permit authorities to impose financial penalties based on a company's worldwide revenue. The Delhi High Court will hear the case on 3 December, setting the stage for a crucial battle that could redefine how multinational corporations are regulated in India's rapidly growing digital market.
The Legal Challenge and Hearing Details
Apple filed its petition contesting the 2023 amendments to Section 27(b) of the Competition Act and the 2024 Monetary Penalty Guidelines. The case was initially listed for hearing on Wednesday before a division bench led by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela. However, the court could not take up the matter due to insufficient judicial time, pushing the proceedings to the new December date.
The Union of India and the Competition Commission of India (CCI) are named as respondents in this significant legal confrontation. At the heart of Apple's lawsuit is the fundamental change in how penalties are calculated for companies found guilty of anti-competitive practices.
Understanding the Global Turnover Penalty System
The amended competition law allows the CCI to impose fines of up to 10% of the average turnover from the preceding three financial years on enterprises convicted of abuse of dominance or anti-competitive conduct. What makes this provision particularly consequential for multinational corporations is the expanded definition of "turnover," which now encompasses worldwide revenue across all products and services.
This represents a dramatic shift from the previous framework, where penalties were calculated based solely on Indian revenue or the revenue from the specific product segment involved in the alleged violation. The new approach effectively overturns the Supreme Court's landmark 2017 Excel Crop Care judgment, which had established that penalties should be based exclusively on "relevant turnover."
Apple argues that this new penalty structure could lead to excessive and unfair financial punishments, especially when allegations concern only a small portion of its Indian operations. The company contends that global turnover bears no rational connection to alleged conduct within India and could produce disproportionately severe outcomes.
Broader Implications for Big Tech Companies
The outcome of Apple's legal challenge carries monumental implications for other technology giants operating in India, including Google, Amazon, and Meta. These companies now face the possibility of substantially larger financial exposure in ongoing CCI investigations examining various practices, including app store regulations, bundling strategies, and digital advertising markets.
India's new penalty model aligns the country more closely with regulatory approaches in the European Union and United Kingdom, where global turnover forms the basis for determining penalty ceilings. However, unlike the EU system where fines typically begin from the revenue of the specific product involved in violations, India's framework permits direct application of global turnover to determine penalties.
This case emerges during a period of remarkable expansion for Apple in the Indian market. The company has reported record revenue driven by robust demand for iPhones, marking its 14th consecutive quarter of growth. Industry projections indicate Apple could sell approximately 15.5 million iPhones in 2025, representing a nearly 25% year-on-year increase despite an overall decline in India's smartphone shipments.
According to Counterpoint Research, Apple commands an impressive 28% value share in India's premium smartphone segment. The company recently achieved global leadership in the smartphone industry, capturing 19% of worldwide market share in the first quarter of 2025, slightly ahead of Samsung's 18%.
Apple's legal petition will serve as a critical test case for how India implements its new global turnover penalty regime against multinational corporations with extensive international revenue streams. The court's decision is likely to establish important precedents affecting both current and future CCI investigations, particularly those involving major technology platforms. When contacted for comment on Tuesday, Apple India declined to respond to emailed queries regarding the ongoing legal proceedings.
