Delhi HC defers Apple challenge to CCI’s global turnover penalty rules to January

The Delhi High Court has delayed a hearing regarding Apple's challenge to India's competition law provisions, specifically those that allow penalties to be calculated based on a company's global earnings. The case has been adjourned until January 27, 2026.

The decision to postpone the proceedings was made by a bench led by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela. The adjournment came after Apple's legal representative, senior advocate Abhishek Manu Singhvi, requested additional time to review a joint affidavit submitted by both the Central government and the Competition Commission of India (CCI).

The court has instructed the Centre and the CCI to formally file the affidavit within one week. Apple has been granted the opportunity to submit a response. While the affidavit's specific details remain undisclosed, it is understood to defend the practice of calculating penalties based on a company's global turnover, as opposed to revenue generated specifically within India.

This legal challenge originates from Apple's constitutional objections to amendments made to Section 27(b) of the Competition Act in 2023, along with the Monetary Penalty Guidelines issued in 2024. These changes empower the CCI to impose financial penalties of up to 10% of a company's average global turnover over the previous three financial years.

Earlier, on December 1, the High Court had issued a notice to the government and the CCI, seeking clarification on why penalties should be linked to global turnover rather than revenue generated within India. The court at that time did not rule on the CCI's request for Apple to submit its financial details by December 8, nor did it comment on Apple's request for protection from potential enforcement actions by the CCI.

Apple initially brought the case to the High Court in November after the CCI requested its financial records as part of an ongoing investigation into Apple's App Store payment policies.

The CCI investigation was triggered by complaints filed between 2021 and 2022 by NGOs, Indian startups, and Match Group (owner of Tinder, Hinge, and OkCupid). These complaints allege that Apple abused its dominant market position by requiring the use of its in-app payment system and charging commissions as high as 30%. The CCI found preliminary evidence of such abuse, a finding that Apple disputes.

Apple has argued that the amended penalty structure could expose the company to potential fines of approximately $38 billion if found liable. In its petition, Apple contends that using global turnover to penalize conduct specific to India is disproportionate and arbitrary, especially when the alleged conduct involves only a small portion of its overall global business.

The CCI has countered Apple's arguments, asserting that the company is attempting to delay the proceedings.

Senior advocate Balbir Singh, representing the CCI, stated that the regulator has only requested India-specific turnover data, not global figures, and questioned why Apple was withholding this information. He added that the investigation is complete and that Apple should respond to the Director General’s report instead of trying to stall the process.

The CCI maintains that global turnover is considered only as a last resort and that penalties are determined after defining the relevant product and geographic markets.

This case is significant because it will likely set a precedent for how India's new penalty framework is applied to major multinational technology companies, potentially impacting future CCI enforcement actions against Big Tech firms.

This legal battle unfolds as Apple experiences rapid growth in the Indian market. Fueled by strong demand for the iPhone 17, the company has recorded 14 consecutive quarters of growth and is projected to sell 15.5 million iPhones in 2025, representing a 25% year-over-year increase.

According to Counterpoint Research, Apple holds a 28% share of India's premium smartphone market by value. In the first quarter of 2025, Apple surpassed Samsung to become the world's leading smartphone brand, capturing a 19% global market share.