Apple files a case to stop a $38 billion antitrust penalty in India
Apple has filed a case in the Delhi High Court seeking to block a new Indian antitrust law that could potentially expose the company to fines of up to $38 billion. The new Indian law calculates fines based on a company’s global turnover rather than its local turnover.
According to a new report, the antitrust case against Apple was initiated by Match Group, the owner of Tinder, along with several Indian startups that accused the iPhone maker of abusing its market dominance.
Last year, the Competition Commission of India (CCI) found that Apple was preventing third-party payment processors from offering services for in-app purchases. CCI alleged that Apple engaged in “abusive conduct” on the iOS app market.
Apple has submitted a 545-page motion to the Delhi High Court, requesting that the new law, which calculates fines based on global turnover, be declared illegal. Apple stated in its filing that its maximum penalty exposure, estimated at 10% of its average global turnover from all services worldwide over the three fiscal years up to 2024, could amount to approximately $38 billion.
The iPhone maker also described the new law as “manifestly arbitrary, unconstitutional, grossly disproportionate, unjust,” arguing that India should calculate fines based on the Indian revenue of the specific business unit that violates antitrust rules.
The Competition Commission of India will make the final decision, and Apple’s plea is scheduled to be heard on December 3.
The European Union had previously threatened companies with hefty fines for antitrust or GDPR violations. Although European watchdogs had long insisted on strict enforcement of these rules, the European Commission recently announced that it would drop many of the regulations that exposed companies to heavy penalties in an effort to reduce bureaucracy.
Given Apple’s substantial investments in India as a new production hub, it is highly unlikely that the company will face a $38 billion penalty there.
Source: https://www.neowin.net/news/apple-files-a-case-to-stop-a-38-billion-antitrust-penalty-in-india/