The Delhi High Court has directed the Union Government and the Competition Commission of India (CCI) to justify the rationale behind imposing penalties on Apple based on the company's global turnover rather than its revenue in India. The court issued these notices on Monday, December 1, 2025, while hearing a plea filed by Apple challenging amendments to the Competition Act that allow penalties to be calculated based on a company's global earnings.
Apple's primary argument is that using global turnover to calculate penalties for conduct limited to India is "arbitrary" and "grossly disproportionate". The company contends that this could lead to fines that are not aligned with the scale of the alleged violation within the Indian market. Apple estimates that it could face a potential fine of around $38 billion (₹3.40 lakh crore) if the CCI's penalty is 10% of its average global turnover for the fiscal years 2022 to 2024.
The specific legal challenge concerns the 2023 amendment to Section 27(b) of the Competition Act and the 2024 Monetary Penalty Guidelines. These changes allow the CCI to impose fines of up to 10% of the average global turnover of the past three financial years for companies found guilty of abusing their dominant position or engaging in anti-competitive practices. Apple argues that this amendment, effective from March 6, 2024, should apply prospectively and not retrospectively. They also state that it breaches the Supreme Court's judgments on proportionality and reasonableness.
The CCI's investigation into Apple stems from 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 position by requiring developers to use its in-app payment system and pay commissions of up to 30%. The CCI found initial evidence of abuse, a finding Apple denies.
Representing the CCI, Senior Advocate Balbir Singh argued that Apple was attempting to delay the proceedings. He stated that the investigation was complete and that Apple must respond to the director general's report rather than stall the process. Singh clarified that global turnover is considered only as a last resort when a company does not provide sufficient information to compute the relevant turnover and that the CCI is primarily seeking information on India turnover. He also added that the concept of global turnover is to determine the quantum of penalty and not to establish liability.
The Delhi High Court bench, comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, declined to order Apple to submit its financial details by December 8, as requested by the CCI. The court has scheduled the next hearing for December 16. The court questioned whether it was unreasonable to consider turnover from other unrelated products if the CCI initiates proceedings concerning only one product.
