Apple, the iPhone maker, faces a potential $38 billion antitrust fine in India after persistently refusing to submit financial records demanded by the country's competition regulator.
The Competition Commission of India (CCI) has been investigating Apple's App Store practices since 2021, following complaints from an alliance of Indian startups and Match Group, the owner of Tinder, alleging the company forces developers to pay excessive commissions for in-app purchases.
The regulator concluded in 2024 that Apple holds significant influence over digital services and products and has pressed the company for verified financial records covering three years.
Apple has not complied, arguing that a 2024 amendment to Indian competition law allowing penalties to be calculated on global turnover rather than domestic revenue is unconstitutional, disproportionate and unjust.
The company said it fears the regulator could use its worldwide sales of hardware and services to calculate a fine of up to $38 billion, which would represent one of the largest antitrust penalties ever imposed.
The CCI rejected Apple's request to pause proceedings, accusing the company of undermining procedural discipline through repeated extensions since October 2024.
The regulator argued that global turnover-based fines are essential to ensure penalties carry real deterrent value against large multinationals that might otherwise treat India-only fines as a cost of doing business.
The CCI has given Apple two more weeks to file responses and has for the first time fixed a final hearing date of 21 May.
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An antitrust lawyer warned that if Apple does not comply with the disclosure demand, it risks losing its opportunity to dispute the size of any penalty.
Apple is separately challenging the underlying law in the Delhi High Court, seeking suspension of enforcement while that case proceeds.
The recap
- CCI says Apple failed to provide requested financial information.
- Apple warns it "could be fined up to $38 billion".
- Regulator gave two weeks to respond and set final hearing.
