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ETtech Explainer: Why Apple is fighting India’s heavy-fine rule
The Economic Times· 2025-11-27 08:16
Core Viewpoint - Apple is contesting recent changes to India's competition law that allow the Competition Commission of India (CCI) to impose fines based on a company's global turnover, which could expose Apple to penalties of up to $38 billion, arguing that the law is arbitrary and unconstitutional [2][8]. Group 1: Legal Challenge - The amended Competition Act permits fines of up to 10% of a company's global turnover derived from all products and services, retrospectively [2][8]. - Apple contends that penalties should only apply to the specific part of the business that breaches the law, not the entire global operations [3][9]. - The company is seeking partial quashing of the CCI's Confidentiality Ring Order, which requires the submission of audited financial statements for FY2022 to FY2024 under the new penalty rules [4][9]. Group 2: Constitutional Arguments - The petition argues that the new penalty measures violate the "doctrine of proportionality" under Articles 14 and 21 of the Constitution, emphasizing that laws should apply prospectively rather than retrospectively [5][9]. - Apple requests the court to declare certain penalty guidelines as arbitrary and beyond the powers of the Competition Act [6][9]. Group 3: Industry Implications - Experts suggest that the changes could significantly impact foreign companies operating in India and Indian companies with substantial overseas revenue, potentially increasing monetary liability in competition cases [7][9]. - The case hearing was scheduled for December 3, with senior counsel representing Apple [7][9].