Apple is facing an antitrust law in India that could force it to pay huge fines in its ongoing dispute with Match , the owner of the Tinder app (as reported by Reuters).
Last year, India passed a law allowing the Competition Commission (CCI) to use global turnover to calculate penalties imposed on companies for abusing market. Apple could be fined up to 10%, which would amount to about $38 billion. Apple said using global turnover would result in a fine that is “manifestly arbitrary, unconstitutional, grossly disproportionate and unfair.”
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What is Apple asking a court in India for?
Apple is asking the Delhi High Court to declare the law illegal, suggesting that penalties should be based on the revenue of the specific unit in India that violates the antitrust law.
Apple is facing an antitrust lawsuit in India from 2022 against dating app Match and several Indian startups. The CCI published two reports last year suggesting that Apple had engaged in “abusive conduct and practices” by requiring developers to use its in-app purchase system.
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The CCI was forced to withdraw its investigative reports because they contained confidential information about business practices , resulting in a delay of several months. No final decision has been made and no fine has been imposed on Apple.
Apple insists it has done nothing wrong and argues that it has a very small share of the smartphone market in India, as Android devices are much more popular.
Apple said in its filing today that the CCI used the new penalty law on November 10 in an unrelated case, fining a company for a violation that occurred 10 years ago. Apple said it “had no choice but to bring this constitutional challenge now” to avoid retroactive penalties being applied to it as well.
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Match has argued that a high fine based on global turnover would deter companies from repeating antitrust violations. Apple's application will be heard on December 3.
