Delhi High Court asks CCI not to pass final orders in probe against Apple

Passing final orders could create complications given that Apple's challenge to the law on global turnover-based penalty is pending, the Court said.
Apple and Delhi High Court
Apple and Delhi High Court
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The Delhi High Court on Friday asked the Competition Commission of India (CCI) not to pass final orders in its probe into global tech giant Apple for its alleged anti-competitive behaviour in the market for the App Store.

A Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia observed that passing the final orders could create "complications" since Apple's challenge to the competition law allowing retrospective penalties on global turnover is pending before the High Court.

It said that it would adjudicate Apple's challenge since there are considerable issues involved.

“We had issued notice only after finding something considerable in the matter. Do not make this petition infructuous. Proceed, but do not take final order," the Court told Senior Advocate Balbir Singh, representing the CCI.

After initial opposition to the plea, Singh said that no final orders will be passed. He also said that Apple had sought extension on several occasions.

Senior Advocate Abhishek Manu Singhvi appeared for Apple and told the Court that even though its challenge to the Competition Act was listed in July, the CCI has scheduled the final hearing on May 21.

Therefore, the Bench asked the CCI not to pass any final orders in the matter. It also asked Apple to cooperate in the proceedings.

Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia
Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia

Apple has challenged the allegations, stating that its challenge to the constitutional validity of the regulations is not an attempt to delay or stall the proceeding before the CCI. 

“Far from the Respondents’ meritless allegations of delay, the record reflects continual co-operation and timely engagement by the Petitioners throughout the Respondent Commission’s investigation process,” the company has said. 

Further, it stated that the CCI has admitted that the penalty provisions are not merely clarificatory but expand the scope of penalty provisions under the Competition Act, giving rise to a reasonable cause that Apple will be fined retrospectively on its global turnover. 

The company reiterated that the law violates the Supreme Court’s judgment in the Excel Crop case and provides untrammelled power and discretion to the CCI. 

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Apple trying to scuttle probe: CCI tells Delhi High Court; defends law on global turnover-based penalties
Apple and Delhi High Court
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