Apple challenges India antitrust law in a bold move at the Delhi High Court, filing a 545-page petition on Tuesday to strike down provisions that expose the tech giant to fines up to $38 billion. The challenge, revealed in documents seen Wednesday, targets the Competition Commission of India (CCI) framework amid an ongoing probe into app store practices. This pre-emptive strike aims to limit penalties to local revenue, reshaping enforcement for global firms in the world’s fastest-growing smartphone market.
The dispute underscores a pivotal tension in South Asia’s digital economy, where India – home to over 800 million internet users – balances innovation with robust regulation. As Apple quadruples its user base here in five years, a victory could embolden other US tech peers like Google, fostering investment while curbing perceived overreach. A loss might deter foreign capital, stalling app developer growth and raising costs for consumers in a region where affordable tech drives financial inclusion.
Apple Files Petition Over India Antitrust Penalty Framework
Apple contests CCI penalty framework through its Delhi High Court submission, arguing the rules violate constitutional principles of fairness and proportionality. The filing, dated November 25, 2025, seeks an interim stay on enforcement until a full hearing. Lawyers for the company claim the law, amended in 2023, arbitrarily applies global turnover for violations, ignoring the scale of local operations.
In the petition, Apple describes the provision as “manifestly arbitrary, unconstitutional, grossly disproportionate, unjust”. It illustrates the flaw with a hypothetical: a toy seller facing penalties on its full stationery turnover of INR 20,000 for a minor infraction in toys worth just INR 100. Such logic, Apple asserts, defies equity and could bankrupt compliant firms overnight.
The company stresses this challenge arises proactively, before any CCI penalty order. Recent CCI application of the rule – in an unrelated case on November 10, 2025, with retrospective fines for decade-old breaches – prompted the action. Apple warns of “no choice but to bring this constitutional challenge now” to shield against similar treatment.
Apple India $38 Billion Fine Risk Looms Large
At stake is the Apple India $38 billion fine risk, calculated at 10 per cent of average global services turnover over fiscal years 2022-2024. This figure dwarfs typical penalties, equating to nearly a third of Apple’s annual worldwide revenue from services like the App Store. For context, India’s contribution to Apple’s global sales hovers below 2 per cent, yet the law equates it to the firm’s entire ecosystem.
Counterpoint Research data shows iOS powers 3.5 per cent of India’s 690 million smartphones as of mid-2025, up fivefold since 2020. Despite this minority share against Android’s dominance, CCI views Apple’s closed iOS ecosystem as a bottleneck for developers. Commissions reach 30 per cent on in-app purchases, with no alternatives permitted, squeezing margins in a market where startups fuel 20 per cent annual app economy growth.
Legal experts like Gautam Shahi of Dua Associates note the hurdle: “The law clearly allows consideration of global turnover, making it difficult to convince the court to interfere with legislative policy.” Still, Apple’s plea could set precedent, capping fines at INR 2,000 crore (about $240 million) based on local app revenue – a fraction of the global hit.
India Antitrust Penalty Apple Court Filing Details Emerge
The India antitrust penalty Apple court filing pivots on Section 27(b) of the Competition Act, 2002, as amended by the Competition (Amendment) Act, 2023. Enacted April 12, 2023, and notified March 2024, it redefines “turnover” for penalties as “global turnover derived from all products and services”. Previously, fines capped at 10 per cent of India-specific income, aligning with territorial jurisdiction.
This shift empowers CCI to deter multinational abuses without jurisdictional limits, mirroring EU Digital Markets Act fines up to 10 per cent globally. Apple’s contest frames it as extraterritorial overreach, breaching Article 14’s equality guarantee in India’s Constitution. The petition demands quashing the clause and related 2024 Monetary Penalty Guidelines.
No immediate response from CCI or the Ministry of Corporate Affairs, which oversees the Act. Official silence persists, though CCI’s website hosts the amended text confirming global scope.
CCI’s Probe into Apple App Practices
Apple challenges India antitrust law amid a CCI investigation launched December 2021, following complaints from Match Group (Tinder’s owner) and Indian developers like Together We Fight Society. Prima facie orders in 2022 alleged dominance in iOS app distribution, triggering a Director General probe.
A confidential July 2024 report, reviewed by senior CCI officials, concluded Apple engaged in “abusive conduct and practices”. Key violations under Section 4 include:
- Imposing unfair conditions via mandatory in-app purchase systems, barring third-party processors.
- Denying market access by prohibiting external payment links.
- Tying app approvals to 15-30 per cent commissions, limiting developer choice.
- Leveraging iOS control to stifle competition in ancillary markets like payments.
The report delineates relevant markets as “app stores for iOS devices in India” and “digital content distribution via apps”. Apple rebuts, claiming it holds under 4 per cent overall smartphone share and offers sideloading options outside India probes. In November 2024, CCI rejected Apple’s bid to halt report circulation, mandating destruction of prior versions for confidentiality.
No final order or penalty issued yet; proceedings advanced to oral hearings in August 2025. Developers hail the scrutiny, citing reduced innovation from Apple’s “walled garden”.
Apple Contests CCI Penalty Framework on Broader Grounds
Beyond quantum, Apple contests CCI penalty framework for retrospective risk. The November 10 application in a cement cartel case imposed INR 6,000 crore using global metrics for 2012 violations, validating Apple’s fears. Petitioners argue this erodes due process, as firms cannot foresee such exposures pre-2024.
In South Asia, where Pakistan and Bangladesh eye similar laws, India’s model influences regional antitrust. Bangladesh’s 2023 Competition Act mirrors global turnover caps, while Pakistan’s CCP mulls amendments. A Delhi ruling could cascade, affecting $100 billion in annual FDI across tech sectors.
Apple maintains compliance with all laws, emphasising iOS security benefits users. Yet, parallels to EU fines – €1.8 billion in 2024 for Spotify restrictions – highlight global pressure.
Background
The saga traces to 2021 complaints alleging Apple stifles competition via App Store gatekeeping. CCI’s 2022 directions invoked Section 26(1) for detailed inquiry, uncovering systemic issues. Amendments stemmed from 2022 consultations addressing “big tech” power post-Covid e-commerce surge. Global turnover rationale: prevents profit-shifting via subsidiaries, ensuring deterrence.
India’s app economy, valued at $5 billion in 2025, employs 1.5 million; penalties could redirect funds to compliance, not growth.
What’s Next
The Delhi High Court lists the matter for December 3, 2025. Interim relief, if granted, pauses CCI enforcement. Broader appeals may reach Supreme Court, delaying resolution into 2026. Stakeholders watch: developers seek faster remedies, while Apple eyes concessions like reduced commissions.
Apple challenges India antitrust law in this crucible, where judicial ink could redraw tech’s fiscal map in South Asia.
Published in SouthAsianDesk, November 27th, 2025
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