Delhi High Court Stays CCI Order in Apple Anti-Trust Probe, Sets Deadline for Cooperation

Delhi High Court Stays Competition Commission of India Probe Against Apple Inc.

New Delhi: The Delhi High Court has intervened in the ongoing probe by the Competition Commission of India (CCI) against Apple Inc. regarding alleged anti-competitive practices linked to its App Store payment system. On Friday, the court directed the CCI not to pass any final order in its probe till the court's next hearing in July.

The court, led by Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia, refused to grant Apple any further extension for appearing before the CCI and furnishing information sought by the regulator regarding its domestic turnover. The court recorded the CCI's statement, stating that "no final decision shall be taken" till the next date of hearing on July 15.

The matter before the Delhi High Court stems from Apple's constitutional challenge to amendments introduced by the Competition (Amendment) Act, 2023, and the accompanying 2024 Monetary Penalty Guidelines. These amendments allow penalties to be calculated on the basis of a company's global turnover rather than India-specific or product-specific revenue. Apple has claimed that the amended penalty framework could expose it to fines of nearly $38 billion if found guilty.

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The CCI, however, argued that while Apple's challenge concerns global turnover, the regulator was currently seeking only information relating to the company's domestic turnover. The regulator maintained that Apple had failed to furnish the required details despite receiving seven extensions, preventing the CCI from concluding adjudication proceedings.

The probe by the CCI was initiated following complaints by NGOs, Indian startups, and Match Group, owner of Tinder, Hinge, and OkCupid. The complainants alleged that Apple abused its dominant position by forcing app developers to use its in-app payment system and charging commissions of up to 30%, thereby restricting competition and market access.

The CCI had earlier found a prima facie case of abuse of dominance and ordered a detailed probe by its director general. Apple approached the high court in November after the regulator sought its global turnover financial statements. The company argued that penalising India-specific conduct using global turnover is "arbitrary" and "grossly disproportionate."

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