Apple Challenges CCI Penalty Provisions In High Court

The Delhi High Court has asked the Centre and Competition Commission of India to respond to Apple's plea against CCI's requirement to submit its audited financial statements. Apple argues that the amended Competition Act, allowing penalties based on global turnover, is unconstitutional and disproportionate.

The Delhi High Court has sought responses from the Centre and the Competition Commission of India (CCI) regarding a plea by Apple Inc. The tech giant is challenging CCI's demand for its audited financial statements spanning several years.

Apple is also contesting amendments to the Competition Act of 2002, which permit CCI to levy penalties based on a company's global turnover. The court, comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, has issued notices to the Union Ministry of Corporate Affairs and CCI, instructing them to file their reply affidavits within a week. The hearing is scheduled for December 16.

In its petition, Apple contends that the new penalty framework enables the consideration of global turnover, quite beyond the affected products in India, for penalties. The firm warns that under this framework, its penalty exposure could reach USD 38 billion. Senior advocate Abhishek Singhvi, representing Apple, argues the penalties are arbitrary, pointing out that if the abuse pertains to one product, it is unreasonable to penalize based on global turnover. Meanwhile, senior advocate Balbir Singh, for the government and CCI, argues the amendments ensure entities with a limited Indian turnover can still be held accountable.

(With inputs from agencies.)