Apple is set to face a key hearing in India on January 27, 2026, over the calculation of potential antitrust fines linked to its App Store practices. The case, initiated by the Competition Commission of India (CCI) in 2021, examines whether Apple abused its dominant position by requiring developers to use its proprietary payment system, with fees reportedly reaching up to 30%. The investigation stems from complaints by app developers, including Match Group, and Indian startups.
The legal dispute centers on India's 2024 amendment to the Competition Act, which allows the CCI to calculate penalties based on a company's global turnover rather than just domestic revenue. Apple has challenged the law, arguing that it could result in "disproportionate, arbitrary, and unconstitutional" fines for violations that occurred solely in India. Using global turnover, the company could face a fine of up to US$38 billion, significantly exceeding previous tech antitrust penalties worldwide. Apple also claims the law has been applied retrospectively, though the CCI has denied this, stating that the amendment merely clarifies existing powers and aligns Indian enforcement with international practice.
In filings seen by Reuters, the CCI argued that using only India-specific turnover fails to deter multinational firms from engaging in anti-competitive practices in digital and cross-border markets. The regulator added that the approach ensures fines retain "real deterrent value" for large companies whose local revenues are relatively small compared with their global earnings. Apple, however, maintains that this method lacks a territorial nexus and could expose the company to penalties unrelated to its India-specific conduct.
The case has broader implications for both India and global tech companies. Analysts note that if the Delhi High Court upholds the global turnover method, India could set a precedent for stricter antitrust enforcement, potentially influencing multinational compliance strategies in emerging markets. The decision may also reinforce India's position as a regulator willing to apply international antitrust oversight standards to protect competition domestically.
Apple's App Store investigation has already highlighted the company's control over iOS developers, with preliminary CCI findings describing the App Store as an "unavoidable trading partner" for app creators. The outcome of the case could affect how Apple and other global tech firms approach operations, pricing, and payment systems in India, where the company has recently expanded its market presence. In 2024, Apple shipped 5 million units in India and exported US$12.8 billion worth of products, while holding a 28% share of the premium smartphone segment.
The January 27, 2026, hearing will focus specifically on the legality and scope of calculating fines based on global turnover, potentially shaping India's antitrust enforcement framework for multinational companies for years to come.
Article edited by Jerry Chen
