CCI accuses Apple of delaying antitrust case by challenging new penalty rules

India’s competition regulator has told the Delhi High Court that Apple’s challenge to the revised global-turnover penalty framework is an attempt to delay an ongoing antitrust probe into its App Store practices and alleged market dominance.

The Competition Commission of India (CCI) has accused Apple of trying to hinder progress in a key antitrust case by contesting the country’s updated penalty calculation system. In a filing before the Delhi High Court, the regulator argued that Apple’s objection to the amended penalty framework was designed to stall proceedings in a long-running investigation into whether the company misused its dominance in app distribution.

At the centre of the dispute is a 2024 amendment to India’s competition law that allows penalties to be based on a company’s global turnover instead of revenue generated within India. The revision significantly raises potential fines for multinational corporations operating in the country.

Apple warns of massive penalty exposure

Apple filed its petition last month, arguing that the global-turnover model is disproportionate, unconstitutional, and unrelated to any conduct under scrutiny in the Indian market. The company said the provision could expose it to penalties as high as $38 billion if the CCI eventually rules against it.

The antitrust case dates back to 2022, triggered by complaints from Match Group and several Indian startups challenging Apple’s App Store rules, including compulsory use of its in-app payment system. Although the CCI has completed its investigation, the final order is still pending.

The regulator told the court that Apple’s attempt to contest the penalty framework at this stage was an effort to delay the main proceedings. Apple, however, maintains that the legality of the amended penalty rules must be decided before the case can move ahead.