The antitrust authority in India has justified its use of global turnover to determine fines, claiming that this method is necessary to deter wrongdoing by large, international corporations. Apple is challenging a 2024 rule that could subject it to fines of up to $38 billion following a probe into app store exploitation.
Apple’s request to New Delhi to overturn the 2024 law is the first challenge to India’s antitrust penalty statute. Since last year, the law permitted the Competition Commission of India (CCI) to use global turnover to determine the fines it levies on businesses that abuse their market dominance.
CCI justifies retroactive antitrust law amid Apple dispute
In an unpublished court document dated December 15, the CCI stated that the rule “aligns Indian competition law enforcement with established international practice,” providing the first comprehensive justification for this approach.
According to the CCI, this strategy ensures that fines retain their actual deterrent value in complex, digital, and international marketplaces, rather than being insignificant or readily absorbed by major multinational corporations.
The regulator added that using merely India-specific revenue as the basis for calculating penalties is insufficient to discourage the contested behavior, particularly in the case of international digital enterprises.
In a different lawsuit, Apple claimed that the Competition Commission of India unlawfully applied the new statute retroactively.
The CCI refuted the allegation, claiming that the legislative revisions just defined its definition of turnover and that it always had the authority to issue fines as high as a tenth of a company’s turnover.
The CCI stated, “Clarificatory provisions operate retrospectively as they explain the true intent of the legislature.”
Apple faces global penalties over App Store practices
In November last year, Apple’s 545-page court file, which is not publicly available, requested that judges declare unlawful the 2024 law that permitted the CCI to utilize global turnover, not just that in India, when calculating penalties.
According to the filing, Apple’s “maximum penalty exposure” may be approximately $38 billion, equivalent to 10% of its average global revenue derived from all services worldwide over the next three fiscal years, until 2024.
A report from Cryptopolitan revealed that Apple further stated that a “penalty based on global turnover…would be manifestly arbitrary, unconstitutional, grossly disproportionate, unjust.”
Since 2021, the CCI has been investigating Apple Inc. for potentially abusing its dominant position in the app industry by requiring developers to utilize its exclusive in-app purchase mechanism.
According to a 142-page assessment from the CCI’s investigations arm, Apple has “significant influence” over how digital goods and services reach customers, particularly through its iOS platform and App Store.
On June 24, 2024, a CCI unit’s report stated that app developers were forced to comply with Apple’s discriminatory terms. These included a requirement to use Apple’s own billing and payment system because the App Store is considered an essential trading partner.
Match, the owner of Tinder, and Indian entrepreneurs have been embroiled in an antitrust dispute with Apple before the CCI since 2022. Last year, investigators released a report claiming that the U.S. smartphone manufacturer had participated in “abusive conduct” on the app market of its iPhone operating system, iOS.
Another report from Cryptoplitan revealed that CCI scrutinized Apple’s policy of prohibiting third-party payment processors for in-app purchases and requiring developers to use Apple’s own system, with costs of up to 30%.
Apple denied any wrongdoing, including any penalties. As for today, the CCI has not yet rendered a final ruling in the matter.
On 23 April 2025, European Commission officials fined Apple €500 million (approximately $586 million) and €200 million (approximately $232 million), respectively, for breaking “anti-steering” regulations.
The Commission found that developers were unable to offer users more affordable options outside of Apple’s ecosystem due to the constraints of the App Store contract.
In 2022, Apple was fined up to $13.7 million in Russia for alleged “anti-steering.” Russian regulators deemed its App Store payment limits anti-competitive.
According to legal experts, Apple might find it challenging to reverse India’s well-crafted legislative framework.
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Source: https://www.cryptopolitan.com/india-revenue-antitrust-penalties-apple/
