Apple accused of using legal challenge to stall Indian antitrust probe over global-turnover penalties

India’s competition regulator has accused Apple of attempting to delay an ongoing antitrust investigation by challenging the legality of the country’s newly amended penalty framework, according to a filing submitted to the Delhi High Court on Monday.

In its submission, the Competition Commission of India (CCI) argued that Apple’s petition contesting the revised penalty provisions was a tactic designed to slow progress in a case examining whether the iPhone maker misused its dominant position in the app distribution market.

At the heart of the dispute is a 2024 amendment to India’s competition law, which enables the CCI to impose fines based on a company’s global turnover rather than confining penalties to Indian revenue. The change significantly increases potential exposure for multinational technology firms operating in the country, as per media reports.

Apple filed a petition last month challenging the amended framework, contending that global-turnover-based penalties are disproportionate, unconstitutional and disconnected from conduct under scrutiny in India. The company warned that the new formula could leave it vulnerable to penalties of up to $38 billion, based on its worldwide revenue, should the CCI ultimately rule against it.

The underlying antitrust investigation dates back to 2022, when Match Group and several Indian startups accused Apple of anti-competitive practices linked to its App Store rules, including the mandatory use of its proprietary in-app payment system. While the CCI has completed its investigation report, no final order has yet been issued.

The regulator told the court that Apple’s decision to challenge the penalty mechanism at this stage constituted an attempt to “stall” the main proceedings. Apple maintains that the legality and constitutionality of the amended penalty structure must be tested before the merits of the competition case can be adjudicated.

The Delhi High Court is expected to take up Apple’s plea in the coming days, with the outcome likely to shape how India levies penalties against global technology companies in future competition cases.