CHENNAI: Apple on Wednesday told the Delhi High Court that the issue of imposing penalties based on a company’s global turnover is illegal and unconstitutional, while asserting that its legal challenge should not be construed as an attempt to delay proceedings before the Competition Commission of India (CCI).
Appearing before the court, Apple argued that the rules empowering the CCI to levy penalties retrospectively on the basis of a company’s worldwide turnover go beyond the parent statute and violate settled principles of law. The company said it is contesting the validity of the penalty framework itself and not seeking to stall or obstruct the ongoing competition law proceedings against it.
Apple’s submission came in response to concerns that its challenge could slow down the CCI’s adjudication in cases involving alleged anti-competitive conduct related to its app store policies. The iPhone maker maintained that it has been cooperating with the regulator and participating in the proceedings, even as it questions the legality of the penalty mechanism.
The dispute centres on amendments and regulations under the Competition Act that allow the CCI to calculate penalties as a percentage of a company’s global turnover, rather than restricting them to revenue generated in India. Apple contended that applying such a yardstick retrospectively exposes companies to disproportionate and unpredictable liabilities, especially when the alleged conduct occurred before the rules were notified.
Apple further argued that penalties, by their very nature, are quasi-criminal and must adhere to strict principles of certainty and non-retrospectivity. It said the law does not permit regulators to retrospectively enhance punitive exposure through subordinate legislation, and that doing so undermines legal certainty for businesses operating in India.
The Competition Commission, on the other hand, has defended the global turnover framework as essential to ensure effective deterrence, particularly against large multinational companies with relatively smaller Indian revenues. The regulator has argued that penalties linked only to domestic turnover may not be sufficient to discourage anti-competitive practices by global digital platforms.
The High Court is examining whether Apple’s challenge raises substantial questions of law that warrant judicial scrutiny, while also balancing the need for competition law enforcement to proceed without undue delay. The matter is significant as it could have wide-ranging implications for how penalties are calculated in competition cases involving multinational corporations operating in India.
The case comes at a time when India is sharpening its regulatory oversight of big technology companies, with competition authorities increasingly focusing on market dominance, platform conduct and fair access. A ruling on the validity of global turnover-based penalties could shape the future enforcement landscape and influence how global firms assess regulatory risk in the Indian market.