Apple moves HC against CCI law on using global turnover of cos for penalties
This story was originally published at 20:04 IST on 25 November 2025
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NEW DELHI – Apple Inc. Tuesday moved the Delhi High Court against the amendments in the Competition Act, 2002 that allowed the antitrust regulator to penalise companies on the basis of their global turnover. The bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela will hear Apple's plea against the government and the Competition Commission of India on Wednesday.
Under the Competition Act, the antitrust regulator can penalise a company up to 10% of its "global turnover derived from all the products and services". Earlier, the competition regulator could penalise only on the "relevant turnover" from the product or service under investigation derived from doing business in India.
Under the law, the average turnover for the three financial years preceding the contravention is taken into consideration for penalising a company. The Competition Commission of India (Determination of Turnover or Income) Regulations, 2024, and the Competition Commission of India (Determination of Monetary Penalty) Guidelines, 2024 clarify how turnover or income should be determined.
In 2017, the Supreme Court ruled that turnover for penalty purposes must relate to the infringing product and market, not the company's entire business. The apex court had said that the approach for calculating turnover on infringing products aligned with the doctrine of proportionality, ensuring that penalties are fair and proportionate to the offence and companies were prevented from being punished for unrelated business activities. End
Reported by Surya Tripathi
Edited by Saji George Titus
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