Delhi HC to hear Apple’s plea challenging global turnover-based penalty rule on 3 December

Core Viewpoint - Apple Inc. is challenging the updated competition law in India that allows the Competition Commission of India (CCI) to impose penalties based on a company's global turnover, which could lead to excessive fines for multinational corporations [1][2][4]. Group 1: Legal Context - The Delhi high court will hear Apple's plea on December 3 regarding the 2023 amendment to Section 27(b) of the Competition Act and the 2024 Monetary Penalty Guidelines [1][2]. - The amendment allows the CCI to impose fines of up to 10% of the average turnover of the preceding three financial years for companies found guilty of anti-competitive conduct [2][3]. - This change broadens the definition of "turnover" to include worldwide revenue, contrasting with the previous standard that considered only Indian revenue [3][4]. Group 2: Implications for Big Tech - The new penalty regime could significantly increase financial exposure for major tech firms like Google, Amazon, and Meta, as fines may now be calculated based on global revenue [5]. - Apple's challenge is particularly relevant as the company is experiencing rapid growth in India, reporting record revenue driven by strong demand for the iPhone 17 [5][6]. Group 3: Market Position - Apple is projected to sell 15.5 million iPhones in 2025, marking a nearly 25% year-on-year increase, despite a decline in overall smartphone shipments in India [6]. - The company holds a 28% value share of the premium smartphone segment and became the world's largest smartphone brand with a 19% global market share in Q1 2025 [6]. Group 4: Future Considerations - The outcome of Apple's petition will test the application of India's new global turnover penalty regime on multinational corporations and could have significant implications for ongoing and future CCI investigations [7].