Monday’s proceedings at the Delhi High Court placed Apple’s challenge to India’s global turnover penalty rule at the centre of a widening competition dispute.
The court examined Apple’s request to prevent the Competition Commission of India from taking coercive steps while the company contests a rule that allows penalties to be calculated on worldwide revenue.
The hearing marked a shift in the story, drawing renewed attention to a dispute that has been ongoing since 2021.
Regulator pushes back
During the hearing, a lawyer for the Competition Commission of India argued that Apple was attempting to stall the investigation.
The judges asked the regulator to file a detailed response to Apple’s arguments.
The court’s directive suggests that the next set of hearings will determine how quickly the regulator can proceed, as well as how broadly it can apply the amended penalty rule in this and future cases.
The investigation has been active for several years, following complaints from Tinder-owner Match and Indian startups that Apple’s in-app fee harms smaller developers in the domestic app market.
Apple denies any breach and maintains that it operates as a smaller player in India compared with the Android ecosystem.
A final decision, including the potential fine, is still pending.
Penalty rule at the centre
At the heart of the dispute is a 2024 amendment that lets the CCI calculate penalties based on global turnover rather than India-specific revenue.
Apple has argued that such a calculation could expose it to penalties that are disproportionate to the scope of the alleged breach.
The company has said the rule could lead to a maximum fine of around $38 billion under the amended framework.
The CCI has continued to defend its authority to apply the global turnover rule in cases involving possible harm to competition.
The regulator has also maintained that the framework is intended to ensure strong deterrence in fast-growing digital markets.
The ongoing arguments highlight how India’s regulatory approach is evolving as more global tech firms expand their operations in the country.
The investigation into Apple’s practices
The current proceedings follow earlier allegations that Apple’s in-app fee breached competition rules.
Match and Indian startups previously argued that the fee structure hurts smaller developers and restricts fair market access.
Those complaints triggered the investigation that has remained active for four years.
The outcome could influence how global tech companies operate in the country and how the regulator assesses penalties for future cases.
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