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Apple moves Delhi HC; challenges CCI's power to fine based on worldwide revenue
The Union of India and the CCI are named as respondents in the petition, which has been listed for a hearing before a Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela.
Section 27(b) empowers the CCI to levy penalties of up to 10% of the average turnover or income of the preceding three financial years for abuse of dominant position or participation in anti-competitive agreements. The 2023 amendment to Explanation 2 of this section broadened the definition of "turnover" to include a company’s global revenue, significantly expanding the scope for penalty computation.
Apple has filed a petition with the Delhi High Court challenging the provisions of India’s competition law that permit the calculation of financial penalties based on a company’s global turnover.
The US-based technology company is contesting the 2023 amendment to Section 27(b) of the Competition Act, 2002, along with the subsequent Competition Commission of India (CCI) penalty guidelines issued in 2024. These provisions introduce and utilize the concept of "global turnover" when determining the monetary penalties for anti-competitive behavior.
Section 27(b) empowers the CCI to levy penalties of up to 10% of the average turnover or income of the preceding three financial years for abuse of dominant position or participation in anti-competitive agreements. The 2023 amendment to Explanation 2 of this section broadened the definition of "turnover" to include a company’s global revenue, significantly expanding the scope for penalty computation.
The Union of India and the CCI are named as respondents in the petition, which has been listed for a hearing before a Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela.
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