Kathmandu. US tech giant Apple may have problems in India. For this reason, the company is protesting against the new rule and has gone to court to challenge it.
However, Apple has not yet been fined in India. The change in anti-competition law puts Apple at risk of $38 billion in fines. This is equivalent to about 3 lakh 20 thousand crore Indian rupees.
Previously, fines were levied only on businesses conducted in India. That is, in Apple’s case, only the App Store is India’s revenue. This amount would have been very small. However, with the change in law, the Competition Commission of India (CCI) was empowered to use the entire global proceeds of the company as a basis for penalty.
This changed rule has increased the risk of such a large amount. This is the reason why Apple has approached the Delhi High Court.
Where did the lawsuit start?
The dispute began over Apple’s App Store policies. Indian developers complained that iPhone users can only download apps from Apple’s App Store. The payment system belongs to Apple and commissions are subject to its rules. This will harm Indian developers.
Developers felt this was unfair market control. The CCI initiated an investigation on the basis of these complaints. This investigation has raised many questions about whether Apple is abusing its power. This investigation punished the case.
When the investigation began, Apple knew that any fine would only be imposed on its Indian business. However, in 2023, the Competition Act was amended. The government gave the CCI new powers to impose penalties of up to 10 percent of a company’s global turnover.
Apple is one of the largest tech companies in the world. Its global revenue is in the trillions of dollars. So 10 percent directly translates to $38 billion. The research is in India, but the risk is linked to global revenues. The whole game has turned upside down.
Apple’s statement that TAG_OPEN_strong_34 this rule is incorrect
}
Apple argues that if the research is about App Store policies in India, then that part of the revenue should also be fined. The company says that India’s new rule is a form of punishment against it. Apple also argues that the Supreme Court has already ruled that penalties should be imposed on relevant transactions.
What is India saying?
The CCI’s stand is completely different. “Small fines have no effect on big tech companies,” it says. Their business is so large that it is ineffective to impose fines on local income. Hence, the new rules were introduced to ensure that large companies take Indian laws seriously. If companies operate globally, the law should have the same effect. ’
{{TAG_OPEN_strong_32}How far will this fight go?
The case is currently in court. If the court accepts Apple’s application, the threat will be almost eliminated. The penalty will once again be limited to businesses based in India. However, if the court upholds India’s new rules, the CCI will have the strongest punitive power in the world. Its impact will not be limited to Apple. Other tech companies, such as Google, Meta and Amazon, will have to respond to the same standards.
