Apple Asks Indian Court to Block Antitrust Law Allowing $38 Billion Fine
Apple is fighting an antitrust penalty law in India that could require it to pay massive fines in its ongoing antitrust dispute with Tinder owner Match, reports Reuters.
Last year, India passed a law that allows the Competition Commission of India (CCI) to use global turnover when calculating penalties imposed on companies for abusing market dominance. Apple can be fined up to 10 percent, which would result in a penalty of around $38 billion. Apple said that using global turnover would result in a fine that's "manifestly arbitrary, unconstitutional, grossly disproportionate, and unjust."
Apple is asking India's Delhi High Court to declare the law illegal, suggesting that penalties should be based on the Indian revenue of the specific unit that violates antitrust law.
Apple has been fighting an antitrust lawsuit in India since 2022 against dating app Match and several Indian startups. The CCI released a pair of reports last year suggesting that Apple had engaged in "abusive conduct and practices" because it required developers to use its in-app purchase system. The CCI was forced to recall its investigative reports because they contained confidential information about Apple's business practices, resulting in a delay of several months. No final decision has been made, and a penalty has yet to be levied against Apple. Apple maintains that it has not done anything wrong, and argues that it has a very small share of the smartphone market in India because Android devices are much more popular.
Apple said in today's filing that the CCI used the new penalty law on November 10 in an unrelated case, fining a company for a violation that happened 10 years ago. Apple said it had "no choice but to bring this constitutional challenge now" to avoid having retrospective penalties applied against it, too.
Match has argued that a high fine based on global turnover would discourage companies from repeating antitrust violations. Apple's plea will be heard on December 3.
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