Apple To Take On Indian Antitrust Regulator In Lawsuit To Avert Upto $38B In Penalty

• The tech giant has sought to have the law declared illegal.
• The company said the move was to “avoid retrospective imposition of penalty against them.”
• Apple stock has hit fresh records in each of the three sessions this week.

Apple has reportedly filed a lawsuit in an Indian court, challenging an antitrust fine that could require the company to pay up to $38 billion.

The legal headwinds come even as Apple’s stock is on a record-setting pace this week. 

Apple Defends

The tech giant has filed a suit in the New Delhi High Court against the Competition Commission of India’s (CCI) antitrust penalty law, which requires companies to calculate antitrust fines on their global turnover, a Reuters report said, citing court filings. The law has been enforced since last year.

The tech giant has sought to have the law declared illegal. In the 545-page court filing, Apple said its maximum penalty exposure for the three fiscal years through 2024 would be around $38 billion under the new law and assuming a 10% penalty rate. 

The company said the move was to “avoid retrospective imposition of penalty against them.” It pointed to a precedent in which CCI’s new rule was applied retrospectively to another company for a violation committed a decade earlier.

Apple also contended that it is a relatively minor player in the Indian market compared to Google’s Android.

Apple has been locked in an antitrust battle with companies such as Match regarding alleged “abusive conduct” on the App Store. The aggrieved parties have pending complaints with the CCI regarding this.

Why It’s Important

India has now become a key market for Apple after the U.S.-China standoff forced the company to diversify its supply chain away from China actively. To sidestep hefty Trump tariffs, the company began assembling nearly all of its U.S.-bound iPhones in India. Given the expanding penetration, India is also a key focus market for Cupertino.

Apple was forced to tweak its App Store rules in the European Union (EU) earlier this year amid regulatory pressure. It now allows developers in the EU to link to external payments to avoid fines beyond the 500-million-euro fine it has been slapped with. The company has appealed the fine. 

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