Apple Inc. has approached the Delhi High Court challenging recent amendments to India’s competition law, which permit the Competition Commission of India (CCI) to calculate penalties based on a company’s global revenue.
The petition lists the Union of India and the CCI as respondents and contests the 2023 amendment to Section 27(b) of the Competition Act, 2002, along with the 2024 “Determination of Monetary Penalty” guidelines.
Details of the Legal Challenge
Following the amendment, the CCI is empowered to impose financial penalties of up to 10% of a company’s average turnover or income from the preceding three financial years, with the definition of “turnover” now extended to cover worldwide income rather than revenue generated solely within India.
Apple asserts that applying penalties based on global turnover is not proportionate in cases where the alleged conduct pertains only to the Indian market.
Court Proceedings
The matter is slated to be heard by a Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela on November 26.
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