Apple Challenges CCI’s Global Turnover Penalty, Cites Violation of Fundamental Rights

Apple Inc has filed a writ petition before the Delhi High Court challenging provisions of India’s Competition Act that allow penalties to be calculated based on a company’s global turnover. The petition, scheduled for hearing on December 3, argues that these provisions violate the fundamental rights to equality and life and liberty under Articles 14 and 21 of the Constitution. Apple contends that penalty calculations should be based on revenue relevant to the specific product or service under scrutiny, rather than worldwide revenue.

The company has specifically challenged the amended Section 27(b) of the Act, which defines turnover as “global turnover” and authorises the Competition Commission of India (CCI) to consider all products and services when imposing penalties. Apple also seeks to quash parts of the CCI’s ‘confidentiality ring’ order, which required the submission of interlinked financial statements, and certain Penalty Guidelines it deems arbitrary and ultra vires.

Apple cited the Supreme Court’s Excel Crop Care judgment, which interpreted turnover as “relevant turnover” and reinforced the doctrine of proportionality under Articles 14 and 21. The company argued that applying global turnover to a violation in a limited market is disproportionate. For example, penalties for an infringement in a small segment should not be based on total turnover from unrelated products or services generated outside India.

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