Apple vs CCI: Legal Battle Over Competition Fines Could Reshape India’s Digital Market

India’s competition regulator and Apple are locked in a closely watched legal battle that could redefine how global technology companies are penalised for anti-competitive behaviour in the country. The dispute, currently before the Delhi High Court, centres on a 2024 amendment to India’s competition law that changes how financial penalties are calculated.

At the heart of the case is a simple but high-stakes question: should fines be based only on a company’s India-specific revenue or on its global turnover?

Why India Changed Its Competition Law

According to the Competition Commission of India (CCI), the amendment is aimed at ensuring penalties remain effective in a world governed by multinational digital platforms. In the court filing, the regulator said that basing fines solely on local revenue stifles an effective penalty for profit-making businesses with a global footprint whose primary earnings were not made in India.

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According to the CCI, this problem is especially acute in digital markets, where app stores, platforms, and services operate seamlessly across borders. Fines tied only to Indian turnover, the regulator claims, can become insignificant for companies with massive global revenues, allowing penalties to be treated as just another cost of doing business.

The CCI also pointed out that similar approaches already exist in regions such as the European Union, where competition penalties are linked to global turnover to ensure real deterrence.

Apple’s Objection: Disproportionate and Retrospective

Apple has strongly pushed back against the amendment. In its petition before the Delhi High Court, the company argued that linking fines to global turnover could lead to disproportionately large penalties for conduct that occurred solely in India.

The concern is not theoretical. Apple is already facing a CCI ruling that found it abused its dominant position in the app marketplace. While Apple has denied the allegations and maintains that its practices comply with Indian law, it says the new penalty framework could expose it to fines running into tens of billions of dollars.

Apple’s legal challenge also raises the issue of retrospectivity. The company argues that the 2024 amendment should not be used to penalise actions that took place before the law was changed, calling such an approach legally unsound.

Regulator Pushes Back on Apple’s Claims

The CCI has rejected Apple’s defence, saying in a 2018 BloombergQuint article that it had always had the power to fine companies up to 10% of their turnover. The regulator added that the change is simply a clarification on how turnover should be read in cases concerning multinationals.

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The watchdog also accused Apple of attempting to mislead the court, noting that during the investigation, Apple itself requested that only India-specific financial data be considered. Apple counters that even with this context, the broader turnover definition significantly increases its exposure to penalties.

Why This Case Matters Beyond Apple

The result of this case, due to be heard on January 27, could have "massive implications". Legal experts say it may establish a standard for how India applies competition law to global corporations, especially in the technology industry.

If the court sides with the CCI, multinational companies that have digital platforms in India could be exposed to greater regulatory risk and penal action linked to their global revenue. If Apple’s gambit pans out, regulators would have to reconsider how hard they can go after these large global players.

Either way, the decision is likely to shape how international companies weigh compliance with local laws, legal exposure and long-term investment decisions in one of the world’s fastest-growing digital economies.