**Apple Challenges India’s Antitrust Law Amid CCI’s Defense**
The Competition Commission of India (CCI), the nation’s antitrust authority, has defended a new law that calculates fines based on a company’s global turnover, arguing that it will deter multinational corporations from violating competition regulations. This statement comes in response to Apple’s legal challenge against the law, which was enacted in 2024 and could impact other global firms like Pernod Ricard, Publicis, and Amazon, all of which are currently under antitrust scrutiny.
In a court filing dated December 15, the CCI emphasized that the law aligns Indian competition enforcement with international standards. The regulator stated that relying solely on India-specific turnover for penalty calculations, particularly for global digital companies, would not effectively discourage misconduct. The CCI argued that the new approach ensures penalties maintain their deterrent value in complex, digital, and cross-border markets, preventing them from becoming nominal or easily manageable for large multinationals.
Apple’s lawsuit contends that the law, modeled after European Union practices, could lead to excessive fines for violations that occurred solely within India. The tech giant is particularly concerned about facing penalties as high as $38 billion if the global turnover metric is applied, following a CCI investigation that accused it of abusing its dominant position in the app store. Apple has denied these allegations.
Additionally, Apple claims that the CCI has improperly applied the new law retroactively in another case. However, the CCI refuted this assertion, stating that it has always had the authority to impose fines of up to 10% of a company’s turnover, and the recent changes merely clarify how turnover is defined. The CCI noted that “clarificatory provisions operate retrospectively as they explain the true intent of the legislature.”
In its filing, the CCI accused Apple of attempting to mislead the court, asserting that while it can base penalties on global turnover, it only requested “India-specific financial details” from the company. Apple countered this claim, explaining that the turnover information requested by the CCI under the new law could expose it to significantly higher penalties.
The Delhi High Court is scheduled to hear the case on January 27, as both parties prepare to present their arguments regarding the implications of the new antitrust law.
**FAQ**
**Q: What is the main concern for Apple regarding the new antitrust law in India?**
A: Apple is worried that the law, which calculates fines based on global turnover, could result in disproportionately high penalties for violations that occurred only in India, potentially amounting to $38 billion.
