Apple Challenges India’s Global-Turnover Penalty Framework in Delhi High Court

In a heated exchange at the Delhi High Court, the Competition Commission of India (CCI) accused Apple Inc. of attempting to "scuttle" an ongoing antitrust probe against the tech giant by challenging amendments to the Competition Act, 2002, that allow penalties based on global turnover. The dispute, heard on December 1, 2025, before a bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, centers on whether fines for alleged anti-competitive practices should be calculated using Apple's India-specific revenue or its worldwide earnings.

Senior Advocate Balbir Singh, representing the CCI and the Union Ministry of Corporate Affairs, argued that the regulator has only requested audited financial statements and India turnover data from Apple, due by December 8, emphasizing that global figures are not required for the current investigation. Singh further claimed Apple's petition is a deliberate move to derail the probe, which examines potential abuse of dominance in the smartphone market.

The CCI's investigation into Apple stems from complaints alleging unfair app store policies and restrictive practices that stifle competition, particularly in India's burgeoning digital ecosystem. Prior to the 2023 amendment, penalties under the Competition Act were limited to turnover from the "relevant product or service" within the "relevant geographic market"—effectively capping fines at 10% of India-generated revenue for the implicated goods.

However, the revised law empowers the CCI to base penalties on a company's average global turnover over the preceding three financial years, a provision aimed at deterring multinational firms without a significant local presence from evading accountability. For Apple, this could translate to a staggering maximum exposure of approximately USD 38 billion, based on its worldwide sales from all products and services between fiscal years 2022 and 2024, far exceeding any India-only calculation.

Apple's counsel, senior advocate Abhishek Singhvi, countered that imposing global turnover-based penalties for India-specific violations is "manifestly arbitrary, unconstitutional, and grossly disproportionate," especially for diversified conglomerates like Apple. Singhvi highlighted the impracticality of the demand, noting that compiling precise India turnover requires extensive internal collation and cannot be met by the December 8 deadline.

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He advocated for penalties confined to the infringing product—such as app store services—and the Indian market alone, arguing that extraterritorial aggregation undermines jurisdictional limits and could penalize unrelated global operations. The bench echoed these concerns, probing the government on the rationale: "Please tell us, prima facie, if the CCI initiates proceedings in relation to one product, how can you take into account turnover with respect to other products? Does it not appear very unreasonable to include other products?"

The court issued notices to the Ministry of Corporate Affairs and CCI, directing them to file reply affidavits within a week, with the next hearing scheduled for December 16, 2025. This case underscores escalating tensions between global tech regulators and Silicon Valley giants, as India seeks to bolster its antitrust framework amid rapid economic growth.

While the amendment is designed to level the playing field against borderless corporations, critics warn it risks overreach, potentially chilling innovation and foreign investment. As the probe advances, the outcome could set precedents for how emerging markets enforce competition laws on tech behemoths, balancing enforcement efficacy with economic proportionality.

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