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Apple has asked the Delhi High Court to stop CCI from seeking its global financial records in relation to alleged antitrust violations

Apple could face a $38 Mn penalty under India’s new antitrust laws that calculate fines based on global turnovers

The CCI and Apple have been fighting a legal battle over the latter’s alleged abuse of its position on the iOS app store

Apple has asked the Delhi High Court to stop the Competition Commission of India (CCI) from seeking its global financial records in relation to the ongoing antitrust probe against it in India.

The CCI has been investigating Apple over its app store policies and reportedly found the company guilty of abusing its dominant position. While Apple denies these allegations, it stands to be fined around $38 Bn if its global turnover is used to calculate the penalties.

The iPhone maker has sought the Delhi HC’s protection from the CCI investigation, asking that it be paused for the time being and no action be taken against it in the matter, Reuters reported.

Apple has argued that relenting to the CCI’s order at this time will defeat the company’s legal pursuit against the country’s penalty ruleswhich the agency holds are necessary to deter foreign multinational companies from abusing their position. The CCI reportedly sough financials from Apple in an order dated December 31.

The HC will hear the matter on January 27 now.

CCI’s Case Against Apple

Apple has been fighting the CCI and India’s penalty rules since July 2024when the regulator found that the company had exploited its dominant position in the app store market by forcing developers to use its proprietary in-app purchase system.

“Apple App Store is an unavoidable trading partner for app developers, and resultantly, app developers have no choice but to adhere to Apple’s unfair terms, including the mandatory use of Apple’s proprietary billing and payment system,” the CCI has said at the time in its report, that was a culmination of investigations dating back to 2021.

The investigation stemmed from a complaint filed by the Alliance of Digital India Foundation, which argued that Apple’s in-app fee of up to 30% hurts competition by raising costs for app developers and customers. The resultant investigation had found that Apple did not permit third-party payments processors to provide services for in-app purchases, and apps were also not allowed to include any external links for customers to choose other payment options, violating India’s competition laws.

The CCI has accused Apple of dragging the case, seeking repeated extensions to file its objections to the investigation, which it says undermines “procedural discipline and impedes the timely conclusion of proceedings”.

Apple has since challenged India’s new anti-trust penalty law in the Delhi HCasking for it to be declared illegal. The new rules came into effect in 2024 and allow the CCI to use global turnover numbers to levy penalties.

The law seeks to fine companies up to 10% of their average global turnover if they are found to be in violation of antitrust laws, taking Apple’s possible penalty up to $38 Bn when calculated for three fiscal years up to 2024.