Apple risks $38 billion fine as CCI defends global turnover-based penalty in antitrust case: Details here
The Competition Commission of India (CCI), the country’s antitrust watchdog, told a court that a law calculating fines based on a company’s global turnover would deter violations by multinational companies and oppose Apple’s opposition to the measure, Reuters reported.
The report stated that Apple asked the judges in November last year to remove the 2024 law, which could also affect multinational companies such as Pernod Ricard, Publicis, Amazon and other foreign companies under antitrust investigation.
The law “brings competition law enforcement in India into line with established international practice,” the report said, as CCI provided detailed reasoning for the first time in a court filing dated December 15, which is not publicly available.
Referring to the regulatory body, the report stated that relying solely on India-specific turnover in calculating penalties, especially for global digital companies, could not deter the impugned behavior.
“This approach ensures that penalties retain their real deterrent value in complex, digital and cross-border markets, rather than becoming nominal or easily absorbable for large multinational players,” CCI said in the filing seen by the news agency. he said.
live mint could not independently verify the report.
Apple said in its lawsuit that the law, which is based on practices in the European Union, could lead to disproportionate fines for violations that occur only in India.
The company fears it could face fines of up to $38 billion when the global turnover benchmark is applied, following a CCI investigation that found it had abused its dominant position in the app store. Apple denied the allegations.
What does CCI say?
The report stated that Apple claimed that the competition authority had illegally used the new law retroactively in another case.
The CCI rejected Apple’s claim, stating that it has always had the power to impose fines of up to 10% of a company’s turnover and that changes in the law have clarified how it defines turnover.
“The explanatory provisions operate retroactively as they clarify the true purpose of the legislature,” the CCI said, according to the report.
In its filing, the CCI accused Apple of trying to mislead the court and claimed that it had only asked for “India-specific financial details” from Apple despite having the power to base penalties on global turnover.
Citing the court filing, the report said Apple denied the claim, explaining that the turnover details sought by the CCI under the new law could subject it to a much higher penalty.
The Delhi High Court will hear the case on January 27.
