India defends antitrust penalty law in Apple case

India's Competition Commission told a court its 2024 law allowing fines based on global turnover will deter breaches by multinationals; Apple has asked judges to strike the law down and the Delhi High Court will hear the case on January 27.

India's competition regulator told a court the 2024 law that allows fines to be calculated from a company's global turnover will discourage breaches by multinational firms. Apple has asked Delhi judges to strike down the law, saying it could produce disproportionate penalties for conduct that occurred only in India. The Competition Commission of India filed a detailed rationale on December 15, saying the change aligns enforcement with international practice. The Delhi High Court is scheduled to hear the lawsuit on January 27. Key points: - The CCI told the court the global-turnover basis preserves real deterrent value in complex, cross-border digital markets. - Apple filed papers in November seeking to strike down the 2024 law and says it could face much higher fines for India-only breaches; Apple denies the CCI's abuse findings. - The CCI said the amendment merely clarifies how turnover is defined and denied that it applied the law illegally in other cases, calling the provision clarificatory. - The regulator said it had sought only India-specific financial details from Apple despite its stated power to base penalties on global turnover. - The Delhi High Court will hear the case on January 27. Summary: The dispute centers on whether penalties should be calculated from global turnover or India-specific turnover, with the CCI arguing the global approach is needed for deterrence and Apple warning of disproportionate penalties. The Delhi High Court hearing on January 27 will determine next legal steps; wider implications for other foreign firms under antitrust scrutiny are reported but undetermined at this time.