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

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

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.

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.

Topics

World & Politics Policy & Regulation

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