NEW DELHI: US tech giant Apple has approached the Delhi High Court challenging an amendment to the Competition Act, 2002, which allows the Competition Commission of India (CCI) to impose penalties based on a company’s global turnover.
Apple has contested the amendment to Section 27(b) of the Act and the 2024 monetary penalty guidelines. Under Section 27(b), companies found guilty of abusing their dominant position or violating competition rules can be fined up to 10% of their average global turnover for the past three financial years.
A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela is expected to hear Apple's petition.
The CCI is currently investigating Apple over alleged anti-competitive practices related to its App Store. Apple said it decided to challenge the law after the CCI, in March this year, directed it to submit audited financial statements for FY 2022, 2023, and 2024. The company fears facing a large retrospective penalty—similar to one imposed by the CCI on another entity on November 10.
Apple argues that calculating penalties based on its global turnover would be arbitrary, unconstitutional, and disproportionate. It estimates that a 10% penalty on its average global turnover for FY 2022–2024 could amount to about $38 billion.
Apple says the amendments, which came into force in March 2024, should apply prospectively, not retrospectively. The matter is now likely to be heard on December 3.