Apple Challenges India’s Antitrust Penalty Rules as Potential Fine Reaches $38 Billion

Apple has filed a petition with the Delhi High Court challenging how India’s antitrust authority calculates fines, as the company faces a potential 38 billion dollar penalty linked to an ongoing competition investigation. The dispute centers on the Competition Commission of India’s practice of using a company’s global turnover to determine fines — a method Apple argues is “unconstitutional,” “unjust,” and “grossly disproportionate.”

The CCI is examining allegations from a coalition of Indian startups and Match Group, which claim Apple engages in abusive conduct by requiring app developers to use its in-app purchase (IAP) system and pay high commissions. Apple has denied these allegations. Although a final ruling is still pending, the regulator said in a 2021 order that Apple’s mandatory IAP model appears to limit developers’ ability to choose their own payment processors.

India has become one of Apple’s most important growth markets. The company booked record shipments of 5 million iPhones in the third quarter of 2025, according to IDC, and is expected to sell 15 million units in the country this year — potentially placing Apple among India’s top five smartphone brands.

Apple is also rapidly expanding its manufacturing footprint in India as part of a broader supply chain diversification away from China. In 2024, Apple’s exports from India reached 12.8 billion dollars, rising more than 42 percent year over year.

The legal challenge highlights the high stakes for Apple in a market where demand, local production and regulatory scrutiny are all intensifying. A ruling in the case could have significant implications not only for Apple’s India strategy but also for how global tech giants are penalized under the country’s evolving competition laws.