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

Core Viewpoint - The Delhi High Court has deferred the hearing on Apple's challenge to India's competition law provisions that allow penalties based on global turnover, rescheduling it for January 27, 2026 [1][2]. Legal Proceedings - The court adjourned the proceedings after Apple's senior advocate requested time to respond to a joint affidavit from the Centre and the Competition Commission of India (CCI) [2]. - The court has directed the Centre and the CCI to submit the affidavit within a week, allowing Apple to file a counter [3]. Competition Law Context - The case arises from Apple's challenge to amendments in Section 27(b) of the Competition Act and the Monetary Penalty Guidelines, which enable the CCI to impose fines up to 10% of a company's average global turnover over the last three financial years [3]. - The CCI's request for Apple to submit its financial details was not granted by the court, which also refrained from commenting on Apple's plea for protection from potential coercive actions [4]. Investigation Background - Apple is under investigation by the CCI regarding its App Store payment policies, following complaints from NGOs and Indian startups alleging abuse of dominant position [5][6]. - The CCI has found prima facie evidence of abuse, which Apple denies [6]. Potential Financial Impact - Apple has warned that the amended penalty framework could lead to fines of nearly $38 billion if found guilty, arguing that using global turnover for India-specific conduct is arbitrary and disproportionate [7]. - The CCI contends that Apple is attempting to delay the proceedings and has maintained that global turnover is considered only as a last resort [8]. Market Position - Despite the ongoing legal challenges, Apple continues to grow rapidly in India, driven by strong demand for the iPhone 17, with 14 consecutive quarters of growth expected to sell 15.5 million iPhones in 2025, a 25% increase year-on-year [9]. - Apple holds a 28% share of India's premium smartphone market by value and has become the world's largest smartphone brand in Q1 2025, with a 19% global market share [10].