Apple Challenges New Indian Antitrust Law With $38 Billion Fine Threat

Apple has filed a petition with India’s Delhi High Court to challenge a new antitrust law that could expose the company to a potential $38 billion fine. The law, enacted in 2022, allows the Competition Commission of India (CCI) to impose penalties based on a company’s global revenue rather than its local earnings. Apple argues that this approach is ‘manifestly arbitrary, unconstitutional, and grossly disproportionate,’ claiming it would unfairly penalize the tech giant for past violations. The company is seeking to have the law declared illegal, arguing that penalties should be calculated based on the revenue generated within India from the specific business unit that breached the antitrust rules. Apple also highlighted that the CCI applied the new penalty law on November 10 in an unrelated case, fining a company for an offense that occurred a decade earlier. This has prompted Apple to take constitutional action to prevent retroactive penalties. The court is expected to hear the case on December 3, pending a ruling on whether the law is constitutional. The case stems from a 2022 antitrust dispute involving Apple’s use of its in-app purchase system, which has been a point of contention with developers and regulators.