Apple's Legal Challenge: Delhi High Court Postpones CCI Order Amid Revised Competition Act

In a recent judicial development, Apple has managed to secure a temporary delay from the Delhi High Court on the Competition Commission of India’s (CCI) impending final order.  

The multinational corporation is contesting amendments to the Indian Competition Act, which could impose substantial penalties on companies based on their global turnover. 

Apple's Objection to the Amended Competition Act 

The Delhi High Court has intervened in the proceedings between Apple and the CCI, instructing the latter not to pass a final order until July 15, 2026.  

Apple has raised concerns over recent amendments in the Competition Act, which allow the CCI to levy penalties based on a company's global turnover.  

This marks a significant deviation from previous practices where penalties were based only on domestic turnover related to the affected products or services. 

Citing the risk of facing hefty fines, potentially around $38 billion, Apple argues that the penalties should not include revenue from territories outside India.  

The court's interim order intends to prevent the impending CCI's ruling from rendering Apple's petition irrelevant before the court hearing. 

The Court's Interim Directive 

Chief Justice D K Upadhyaya and Justice Tejas Karia presided over the case, stipulating that while proceedings could continue, any final decisions by the CCI should be postponed.  

Apple's legal representative, Abhishek Singhvi, contended that the regulator's actions before the court's hearing could undermine the petition's validity. 

Senior advocate Balbir Singh, representing the CCI, suggested that while proceedings could proceed, any penalty implementation should be pending.  

However, the judges remarked that finalising the order would complicate the case, as it would become subject to appeals. 

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Implications of the Amended Act 

This legal tussle stems from the revised provisions empowering the CCI to penalise firms found guilty of abuse of dominance or anti-competitive practices up to 10% of their average turnover over the prior 3 financial years.  

Apple protested that its obligation to furnish audited financial statements, particularly for the calculation of penalties, extends beyond logical requirements since it encompasses global revenue from all products and services. 

Conclusion 

The case between Apple and the CCI highlights key concerns within India's competition regulatory framework. By postponing its final order, the Delhi High Court has provided Apple the opportunity to present its case without immediate risk of significant financial penalties under the new law. 

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