No attempt to delay CCI case; penalty based on global turnover is illegal: Apple to Delhi High Court

Global tech giant Apple has told the Delhi High Court that its challenge to Indian Competition Law allowing retrospective penalties on global turnover is necessary, because the provisions assailed are illegal. .The California-based company has said that contrary to the submission by the Competition Commission of India (CCI), its challenge is not an academic or premature exercise, but an effort to protect itself against penalty provisions that are “are arbitrary, unconstitutional, grossly disproportionate and unwarranted”.“The Petitioners have no choice but to bring this constitutional challenge now to avoid a retrospective imposition of penalty against them based on global turnover derived from all products/services in terms of the Impugned Amended Penalty Provisions. Such an outcome would be manifestly arbitrary, unconstitutional, grossly disproportionate, unjust and totally unwarranted. This in no manner can be considered as an academic exercise or premature in nature,” Apple stated. .The company has made these submissions in its rejoinder filed against a joint affidavit filed by the Central government and the CCI to Apple's writ petition. In its plea, the tech company challenged Section 27(b) of the Competition Act, 2002, as well as the provisions of the Competition Commission of India (Determination of Turnover or Income) Regulations, 2024 and the Competition Commission of India (Determination of Monetary Penalty) Guidelines, 2024. These provisions allow CCI to penalise an enterprise or a group of enterprises up to 10% of the average of its global turnover or income of the last three years for abuse of dominant position or for entering into anti-competitive agreements. Notably, CCI has been dealing with a case against Apple regarding allegations of anti-competitive conduct in the market for the App Store. Apple has said that it is challenging the law at this stage because the CCI had passed an order in March 2025 asking the company to submit its audited financial statement for the financial years 2022, 2023 and 2024.In its affidavit, the government had questioned the maintainability of Apple’s petition and said that the company has not approached the Court with clean hands, as it has scuttled the probe before CCI..Could be fined $38 billion: Here's why Apple has moved Delhi High Court against Indian competition laws.Apple has challenged these assertions, 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. .Apple's rejoinder statement has been filed through Partner & Chair, Competition Law at J Sagar Associates (JSA) Nisha Kaur Uberoi..Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.