American tech giant Apple has approached the Delhi High Court to challenge provisions of India’s competition law that allow the Competition Commission of India (CCI) to impose penalties based on a company’s global turnover.The plea is listed for hearing on Wednesday before a Division Bench of chief justice Devendra Kumar Upadhyaya and justice Tushar Rao Gedela, according to the list of cases reviewed by Mint.The Union of India and the CCI have been named as respondents in the case.This marks one of the first major legal challenges to the 2023 overhaul of the Competition Act, which introduced sweeping changes—most notably a new penalty framework allowing the CCI to impose fines based on a company’s global turnover, rather than only its India or product-specific revenue.Also Read | How Apple is reinventing the iPhone with new materials and record R&D spendingApple has challenged the 2023 amendment to Section 27(b) of the Competition Act and the 2024 Monetary Penalty Guidelines, which introduced the concept of “global turnover” for calculating fines.Under Section 27(b), the CCI may impose penalties of up to 10% of the average turnover of the preceding three financial years on enterprises found guilty of abuse of dominance or anti-competitive conduct.The amendment expanded the definition of “turnover” so that penalties can now be based on global revenue from all products and services, rather than just Indian revenue or the revenue from the specific product where the alleged violation occurred.Prior to this change, penalties were restricted to “relevant turnover” following a 2017 Supreme Court ruling in the Excel Crop Care case, which held that using total or global turnover had “no rational connection” to the alleged anti-competitive conduct in India and would be disproportionate.Also Read | Centre tells SC it will intervene to ensure the ISL 2025-26 season is heldThe amendment effectively overturns that judgment and brings India in line with jurisdictions such as the European Union and UK, where global turnover is used to set penalty ceilings.However, unlike the EU, where fines begin from the turnover of the specific product involved, India’s framework allows global turnover to directly influence the penalty amount.Apple argues that this could lead to excessive and unfair fines, even when the conduct in question relates to only a small portion of its Indian business.Apple India declined to comment on Mint’s emailed query.The issue is significant for Big Tech companies, including Apple, Google, Amazon and Meta, which now fear exposure to far larger penalties in India.Also Read | Will SC ruling delay economic bills in states? Experts see checksSeveral CCI investigations, particularly into Google’s app store rules, digital advertising practices and platform bundling, could potentially lead to fines calculated on worldwide revenue.Apple alone generates global revenue of roughly $390-400 billion annually.Apple’s challe in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. 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Apple challenges India’s global turnover penalty regulation in Delhi High Court.
