Apple Inc. (NASDAQ: APPL) just filed a petition in Delhi High Court to push back against Indias antitrust regulator, the Competition Commission of India (CCI). The company argues that using global turnover to calculate penalties is unfair and could lead to a $38 billion fine, which it calls grossly disproportionate. This move comes after years of tension over Apples App Store practices in the worlds fastest growing smartphone market.
The roots of this dispute go back to late 2021, when the CCI launched a formal investigation into Apple following complaints from Together We Fight Society, a non-profit group. Developers accused Apple of abusing its control over the iOS app distribution by forcing them to use its in app payment system, which takes up to a 30% commission. The regulator saw this as a barrier that locked out rivals and raised costs for everyone involved, from creators to users. That probe, now stretching over four years, hit snags along the way, like a 2024 recall of investigation reports after Apple claimed leaks of sensitive data. A confidential CCI report last year labeled these policies as abusive conduct, but no final ruling has landed yet.Â
Apples latest court filing, a hefty 545 pages submitted this week, zeros in on a 2024 amendment to Indias competition law. Before that change, fines topped out at 10% of a firms India only revenue. Now the CCI can tap global figures, exposing giants like Apple to massive hits even if local sales are small. Apple points out its India smartphone share hovers around 5%, far behind Android leaders, yet the formula ignores that reality. The company wants penalties tied strictly to affected business lines in India, using an analogy of fining a toy shops full revenue for issues in its tiny stationery section. The case heads to a hearing on December 3, with no stay granted so far.
This fight echoes Googles own battles with the CCI, where the search giant faced a $162 million fine in 2022 for similar app store dominance tactics, later adjusted on appeal. U.S. tech heavyweights grapple with Indias tougher stance on Big Tech as local startups push for fairer play. Alphabet Inc. (NASDAQ: GOOGL), Googles parent, has seen multiple probes since 2020 over Android billing and pre installs. Apple, meanwhile, has ramped up India manufacturing, shipping record iPhones there this year amid global supply shifts from China. Success in production, up to 15 million units projected for 2025, makes the market too vital to risk, yet regulators view App Store rules as separate from hardware gains.
Other tech firms watch closely, as a win for Apple could limit how far the CCI stretches its penalty reach. Match Group Inc. (NASDAQ: MTCH), owner of Tinder, joined Indian developers in the complaints, frustrated by the same payment mandates. India amended its laws partly to match global trends, like Europe’s Digital Markets Act, but Apple argues retrospective application violates fairness, citing a prior CCI case using the formula for decade old conduct. Broader ripples could hit any multinational with India exposure, forcing a rethink on how local rules scale to worldwide books.
Apples court challenge tests whether Indias ambition to police tech dominance will bend under claims of overreach. The four year probe drags on, blending developer gripes with policy clashes, while iPhone assembly lines hum nearby. Outcomes here might reshape how global players navigate emerging markets, balancing growth with regulatory heat.Â
