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India's Global Fines: Apple's $38B Fear
8 Jan
Summary
- India's new law calculates fines based on global turnover.
- Apple fears potential fines up to $38 billion under the law.
- The Competition Commission of India argues the law deters multinationals.
India's antitrust regulator has defended a new law that calculates fines based on a company's worldwide revenue, a move actively challenged by Apple. The Competition Commission of India (CCI) asserts that this legislation aligns with international practices and is essential for deterring multinational corporations from violating antitrust regulations.
This new measure is significant as it moves away from solely considering India-specific turnover. The CCI contends that calculating penalties on a global scale ensures they have a substantial deterrent effect, preventing large companies from absorbing fines easily. Apple argues that applying this law retrospectively could result in disproportionate penalties for breaches occurring solely within India.
The Delhi High Court is scheduled to hear Apple's lawsuit on January 27. The company's challenge stems from concerns that the law, mirroring EU practices, could lead to fines of up to $38 billion based on a CCI investigation into its app store practices, which Apple denies.
