Delhi HC defers Apple challenge to CCI’s global turnover penalty rules to January
NEW DELHI: The Delhi High Court on Tuesday postponed the hearing in Apple Inc.’s challenge to India’s revised competition law provisions that allow penalties to be calculated on a company’s global turnover, pushing the matter to January 27, 2026.
The bench, comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, adjourned the hearing after senior advocate Abhishek Manu Singhvi, appearing for Apple, sought time to respond to the joint affidavit filed by the Center and the Competition Commission of India (CCI).
The court directed the Center and the CCI to register the affidavit within a week and gave freedom to file a lawsuit against Apple. The contents of the affidavit are yet to be made public, but it aims to justify the calculation of penalties on the basis of global turnover rather than India-specific income.
Global turnover test
The case arises from Apple’s constitutional challenge to the changes introduced through amendments to Article 27(b) of the Competition Act in 2023 and the Fines Guidelines published in 2024. These provisions give the CCI the power to impose fines of up to 10% of a company’s average global turnover over the previous three financial years.
On December 1, the apex court issued a notice asking the Union government and CCI to explain why penalties should be tied to global turnover rather than Indian revenue. The board refused to give any direction on CCI’s request to compel Apple to submit its financial details by December 8, and also declined to comment on Apple’s defense seeking protection against potential coercive action by the regulator.
Apple had approached the high court in November after the CCI sought its financial statements as part of an ongoing investigation into the company’s App Store payment policies.
This investigation follows complaints filed between 2021 and 2022 by NGOs, Indian startups and Match Group, which owns Tinder, Hinge and OkCupid, alleging that Apple abused its dominant position by requiring the use of the in-app payment system and charging commissions of up to 30 percent. CCI found prima facie evidence of misconduct; Apple denied this finding.
Apple warned in its petition that the amended penalty framework could subject it to fines of approximately $38 billion if convicted. The report argued that penalizing India-specific conduct using global turnover was “arbitrary” and “grossly disproportionate”, especially where the alleged conduct involved only a small portion of global business.
CCI opposed Apple’s defense, arguing that the company was trying to delay the case.
“We only wanted the Indian turnover, not the global turnover; why are they keeping this secret?” Senior advocate Balbir Singh, appearing for the regulator, told the court. He said the investigation was complete and Apple should respond to the General Manager’s report rather than trying to stop the process.
The regulator argued that global turnover was only considered as a last resort and penalties were determined after the relevant product and geographical markets were identified.
The case is expected to serve as a test of how India applies its new criminal framework to large multinational technology firms and has broader implications for the CCI’s future sanctions against Big Tech.
The lawsuit comes even as Apple continues to expand rapidly in India. Driven by strong demand for the iPhone 17, the company has recorded 14 consecutive quarters of growth and is expected to sell 15.5 million iPhones in 2025, up 25% year-on-year.
Apple holds a 28% share of India’s premium smartphone market by value and has overtaken Samsung to become the world’s largest smartphone brand with a global market share of 19% in the first quarter of 2025, according to Counterpoint Research.
