Apple Challenges India’s Antitrust Penalty Law Over $38 Billion Fine

Apple is taking legal action against a new Indian antitrust law, filing a petition with the Delhi High Court. This disputed legislation could embroil Apple in fines reaching a staggering $38 billion. The legal maneuver comes amid ongoing antitrust tensions with Match Group, the parent company of Tinder, reports Reuters.

India Uses Global Revenue to Calculate Fines

Under a law enacted in 2023, the Competition Commission of India (CCI) can now calculate antitrust penalties based on a company’s worldwide turnover instead of just its local revenue. This means Apple could face fines as high as 10 percent of its entire global revenue, approximately $38 billion. Apple has criticized this method, labeling it as “manifestly arbitrary” and arguing it is both unconstitutional and unjust. The tech giant contends that fines should reflect only the revenue of the implicated entity within India.

Apple vs. Match Group: Background of the Case

The scrutiny on Apple began in 2022 when complaints from Match Group and several Indian startups accused Apple of mandating the use of its in-app purchase system. The CCI previously termed this requirement as abusive conduct in draft findings. However, the investigation has been in limbo following the withdrawal of these draft reports due to leaked confidential information, leaving the case unresolved for now. Apple maintains its innocence, pointing to its relatively modest 9 percent market share in India, contrasted by Android’s dominance, as a mitigating factor.

Apple Preemptively Challenges Law to Avoid Retrospective Use

Apple has highlighted a concern that this new penalty law has already been applied in a separate case dated November 10 involving historical violations. Worried that this precedent might be retroactively applied to their situation, Apple says it had no choice but to bring this constitutional challenge now. Meanwhile, Match Group supports using global revenue figures in fine calculations, arguing it is essential to deter repeat violations. The court is set to hear Apple’s petition on December 3.

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