Apple moves Delhi High Court against CCI penalty rule based on global turnover

Apple's legal challenge against the CCI's new penalty rules highlights significant concerns regarding the fairness and constitutionality of retrospective penalties. The outcome of this case may reshape the regulatory landscape for foreign companies in India.
Apple moves Delhi High Court against CCI penalty rule based on global turnover

Key insights

  • 1

    Potential $38 Billion Fine: Apple faces a massive fine based on global turnover under new CCI rules.

  • 2

    Legal Challenge Filed: Apple has petitioned the Delhi High Court against the retrospective application of penalties.

  • 3

    Impact on Foreign Firms: The case could set a precedent affecting foreign enterprises in India.

A What happened
Apple Inc. has taken legal action against the Competition Commission of India (CCI) by filing a petition in the Delhi High Court. The tech giant is challenging the amended provisions of the Competition Act that allow the CCI to impose penalties based on a company's global turnover, rather than just its Indian operations. Apple claims this could result in a staggering $38 billion fine. The company argues that the retrospective application of these rules is unconstitutional and disproportionate. Previously, penalties were calculated based on the relevant turnover from the specific product or service under investigation. Apple contends that the new rules unfairly consider global turnover, which could lead to excessive penalties for minor infractions. The court is set to hear the case on December 3, and experts suggest that the outcome could have significant implications for foreign companies operating in India.

Topics

Business & Markets Economy

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