Apple Challenges India’s New Antitrust Penalty Rules in High-Stakes Legal Battle

Apple has launched a major legal challenge against India’s revised antitrust penalty framework, which allows the Competition Commission of India (CCI) to calculate fines based on a company’s global turnover.

Apple iPhone with AI features
Apple iPhone with AI features

The case, filed at the Delhi High Court, marks the first serious pushback against the 2024 amendment that significantly increases potential penalties for firms found abusing market dominance, Reuters news report said.

Apple warned in its 545-page filing that its maximum penalty exposure could reach nearly $38 billion if the CCI were to levy a fine of up to 10 percent of its average global turnover from the past three fiscal years. The iPhone maker argues that imposing penalties linked to worldwide revenue – instead of India-specific turnover – is unconstitutional, arbitrary, and grossly disproportionate.

The dispute stems from a long-running antitrust case involving Apple, Tinder-owner Match, and several Indian startups, who accuse the iPhone maker of restricting third-party payment processors for in-app purchases on its iOS platform. Investigators previously flagged Apple for “abusive conduct,” though the CCI has yet to issue its final ruling or determine a penalty.

Apple is also contesting the retrospective use of the new rules, citing a recent November 10 case where the CCI applied global turnover standards to a violation that occurred a decade ago. This, Apple argues, leaves it with no option but to file a constitutional challenge before a similar penalty is imposed in its own case.

The company maintains that any penalty should be limited to the Indian revenue of the specific business unit found in violation. Apple illustrated this through an example: if a toy seller also runs a stationery shop, it would be unreasonable to calculate a penalty based on total turnover when the contravention applies only to the toy business.

India is not alone in adopting tougher standards. Companies in the European Union also face fines amounting to as much as ten percent of their global turnover for antitrust breaches.

iPhone commands around 10.4 percent of the Indian smartphone market in Q3 2025, Business Standard reports. Apple holds about a 23 percent value share, indicating its dominance in the premium segment in India.

For the fiscal year 2025 ending September 2025, Apple’s total global revenue was around US$ 416.16 billion. Apple does not reveal its revenue from India.

As Apple’s installed base in India has grown fourfold over the past five years, the stakes are rising. The High Court is set to hear Apple’s plea on December 3, in a case that could shape the future of antitrust enforcement for multinational companies operating in India.

Shafana Fazal

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