India is standing firm with the new "Global Turnover" rule that allows the Competition Commission of India (CCI) to calculate penalties based on a company's global revenue instead of its Indian revenue. CCI said in the Delhi court hearing that this law will prevent tech giants from treating antitrust fines as a mere "cost of doing business."
The law "aligns Indian competition law enforcement with established international practice," the CCI said in a December 15 court filing, which is not public, as it laid out a detailed rationale for the first time.
"This approach ensures that penalties retain real deterrent value in complex, digital and cross-border markets, rather than becoming nominal or easily absorbable for large multinational players," the CCI said.
The new rule will put Apple at risk of paying approximately $38 billion in fines to India, which is 10% of the company’s total global turnover.
In November, Apple asked New Delhi judges to strike down the 2024 law, which could also have implications for global giants such as Pernod Ricard, Publicis, Amazon, and other foreign companies facing antitrust scrutiny.
Apple, in its defense, said the law, which reflects practice in the European Union, could lead to disproportionate fines for breaches that happened only in India.
The company fears it could be fined up to $38 billion if the global turnover calculation is used, after a CCI investigation found it had abused its position on its app store. Apple denies the accusations.
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