Apple Challenges Global Turnover-Based Penalties in Delhi High Court Under Competition Act
Tech giant says fines based on worldwide revenue are excessive for India-specific conduct
Case marks first major challenge to 2023 Competition Act amendments introducing global turnover penalty regime
By Our Legal Correspondent
New Delhi: November 26, 2025:
In a landmark legal move, Apple Inc. has filed a petition before the Delhi High Court challenging provisions of India’s Competition Act, 2002, which empower the Competition Commission of India (CCI) to impose penalties based on a company’s global turnover. The case is being closely watched by multinational corporations, legal experts, and policymakers, as it could reshape the way antitrust penalties are calculated in India.
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The petition, listed before a division bench headed by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, disputes the 2023 amendment to Section 27(b) of the Competition Act and the 2024 Monetary Penalty Guidelines, which introduced the concept of global turnover for calculating fines.
Background of the Case
- Competition Act Amendment (2023): Section 27(b) was amended to allow the CCI to impose fines up to 10% of the average turnover of the preceding three years, with “turnover” defined to include global revenue.
- Penalty Guidelines (2024): The CCI issued guidelines clarifying that penalties could be based on worldwide turnover, not just India-specific or product-specific revenue.
- Apple’s Challenge: Apple argues that applying global turnover penalties for conduct limited to India is disproportionate and unfair, potentially leading to excessive fines.
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Apple has made both the Union of India and the CCI parties to the case, marking one of the first major challenges to India’s new competition law framework.
Apple’s Arguments
Apple’s petition raises several key points:
- Disproportionate Penalties: Global turnover-based fines could amount to billions of dollars, even if the alleged anti-competitive conduct affects only a small segment of the Indian market.
- India-Specific Conduct: Apple contends that penalties should be limited to revenue generated in India, not worldwide sales.
- Impact on Multinationals: The regime could discourage foreign investment and innovation if companies fear disproportionate penalties.
- Legal Principles: Apple argues that penalties must be proportionate to the harm caused and should not exceed the scope of alleged violations.
Court Proceedings
The case is currently listed for hearing before the Delhi High Court. The outcome will determine whether the global turnover penalty regime survives judicial scrutiny.
Legal experts note that the court will have to balance:
- India’s need to deter anti-competitive practices by powerful multinationals.
- The principle of proportionality in penalties.
- Global best practices in competition law enforcement.
Global Context
India is not alone in considering global turnover for penalties:
- European Union: The European Commission routinely imposes fines based on global turnover, capped at 10% of worldwide revenue.
- United States: Penalties are often linked to affected commerce but can be substantial for global firms.
- China: Similar provisions exist, allowing fines based on global revenue.
Apple’s challenge highlights the tension between global enforcement standards and India’s domestic market realities.
Impact on Businesses
The case has wide implications for multinational corporations operating in India:
- Risk of Higher Penalties: Companies could face fines far exceeding their India-specific revenues.
- Compliance Burden: Firms may need to reassess competition compliance strategies.
- Investment Climate: Excessive penalties could deter foreign investment in India’s growing digital economy.
- Precedent Setting: The Delhi High Court’s ruling will set a precedent for future competition law cases.
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Expert Opinions
- Competition Lawyers: Many argue that global turnover penalties are necessary to deter large corporations whose India revenues are small compared to global operations.
- Corporate Counsel: Others caution that disproportionate fines could discourage investment and innovation.
- Policy Analysts: The case reflects India’s ambition to align with global competition law standards while balancing domestic realities.
Broader Significance
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- First Major Challenge: Apple’s petition is the first major legal challenge to the 2023 amendments.
- Judicial Review: The Delhi High Court’s decision will clarify the scope of CCI’s powers.
- Global Attention: The case is being closely watched by multinational corporations worldwide.
- Policy Debate: It may spark debate on whether India should adopt a hybrid approach, balancing global standards with proportionality.
Conclusion
Apple’s challenge to global turnover-based penalties under the Competition Act is a landmark case that could redefine India’s antitrust enforcement framework. By questioning the proportionality of fines based on worldwide revenue, Apple has opened a crucial debate on balancing deterrence with fairness.
The Delhi High Court’s ruling will not only impact Apple but also set the tone for how India regulates multinational corporations in the digital age. For businesses, the message is clear: competition compliance is critical, and the stakes are higher than ever.
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