Apple moves Delhi HC against CCI’s global turnover penalty rule

Economic Times
Economic Times
1d ago 1 view
Apple has filed a petition against a new CCI rule allowing penalties based on global turnover. This could significantly impact foreign companies in India.
Apple moves Delhi HC against CCI’s global turnover penalty rule
A What happened
Apple has moved to the Delhi High Court to challenge a recent amendment to the Competition Act of 2002. This amendment allows the Competition Commission of India (CCI) to impose penalties based on a company's global turnover, which is a significant shift from the previous method that considered only the relevant turnover associated with the specific violation. The new rule permits fines of up to 10% of the global turnover derived from all products and services. Legal experts suggest that this change could have major financial implications, particularly for foreign companies operating in India and Indian firms with a global footprint. The average turnover for the last three financial years will be used to calculate penalties, potentially increasing the financial burden on companies found in violation of the law.

Key insights

  • 1

    Significant Legal Challenge

    Apple's petition could set a precedent for future corporate penalties.

  • 2

    Global Impact

    The amendment affects both foreign and Indian companies with global operations.

  • 3

    Increased Financial Liability

    Fines based on global turnover may drastically raise potential penalties.

Takeaways

Apple's legal challenge against the CCI's new penalty rule highlights the complexities of corporate regulation in India and its potential global ramifications.

Topics

Politics & World Policy & Regulation