Apple Inc. (NASDAQ:AAPL) is pushing back against India’s new antitrust penalty law that could expose the iPhone maker to fines of up to $38 billion, according to a report published Wednesday.
The challenge is the first against the law, which, since last year, allows the Competition Commission of India (CCI) to use global turnover when calculating the penalties it imposes on companies for abusing their market dominance, Reuters reported.
Apple Deems Rules ‘Arbitrary’ And ‘Unconstitutional’
According to Apple’s 545-page submission to the Delhi High Court, the potential penalty, which is capped at 10% of its average global revenue from 2022 to 2024, would be “grossly disproportionate,” and “unjust,” the Reuters report said.
The company is asking judges to declare the 2024 law illegal.
Apple and CCI did not immediately respond to Benzinga‘s request for comment.
According to the report, Apple also warned that the CCI has already invoked the new rules once before—in a separate case earlier this month—retrospectively applying the provision to conduct that occurred a decade earlier. Apple said this leaves it “no choice but to” challenge the law to avoid a similar retroactive penalty.
See also: Apple To Lead Smartphone Market For First Time In 14 Years: Thanks, iPhone 17
Ongoing India Battles
Since 2022, Apple has been under scrutiny by the CCI following complaints from Tinder owner Match Group (NASDAQ:MTCH) and Indian startups regarding App Store restrictions and in-app payment fees of up to 30%. CCI investigators last year issued a report saying Apple engaged in “abusive conduct,” though the regulator has not yet announced any penalty.
Apple denies wrongdoing and argues that in India, it is a relatively small player compared to Google’s Android ecosystem, though its user base has grown over the years.
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