Apple Inc. has formally contested India’s amended antitrust penalty framework, arguing that the rule—allowing fines based on a company’s entire global turnover—could lead to disproportionately massive penalties, filings show. The challenge comes as the U.S. technology giant faces ongoing scrutiny from the Competition Commission of India (CCI) over its App Store policies.

India’s New Penalty Rule Raises Stakes for Global Tech Firms

Under India’s revised competition law, the CCI can impose fines calculated from a company’s total worldwide revenue, not just revenue generated in India. For multinational tech companies with large global operations, this dramatically increases potential liabilities. Legal experts say the change positions India among the world’s strictest antitrust regimes.

Potential Exposure: Apple Could Face Penalty Up to $38 Billion

Documents indicate that if the revised formula is applied to Apple’s current case, the company’s maximum theoretical fine could exceed $38 billion—one of the largest antitrust penalties ever considered in India or globally. Although such a maximum is unlikely, the possibility has intensified Apple’s pushback.

Apple Argues Law Is “Excessive and Unconstitutional”

In its filing, Apple argues that penalizing companies based on global turnover—regardless of the scale of their business within India—violates principles of proportionality and fairness. The company contends the law risks “arbitrary and excessive punishment” and should instead rely on revenue directly linked to the alleged anti-competitive conduct.

App Store Investigation at the Centre of the Dispute

The CCI is currently examining Apple’s App Store practices, particularly allegations that its commission structure and mandatory in-app payment system limit competition and harm developers. The investigation mirrors similar cases Apple has faced in Europe, the United States, and South Korea.

India’s Stance: Ensuring Fair Competition in the Digital Economy

Government officials defend the amended law as necessary to regulate large digital platforms whose influence extends well beyond national borders. They argue that tying fines to global turnover ensures meaningful deterrence and prevents companies from treating penalties as “the cost of doing business.”

High-Stakes Battle Likely to Influence Global Regulation

Legal analysts believe the outcome of Apple’s challenge will set a major precedent for how India handles competition cases involving multinational corporations. With regulators worldwide tightening oversight of Big Tech, this case could influence future global antitrust strategies.

Awaiting Judicial Review

Apple’s challenge is expected to be heard before a higher judicial body. Until a verdict is issued, the CCI can continue its probe, but any penalties may depend on the court’s interpretation of the new law.