'World's Largest Antitrust Fine': Apple Risks Facing $38-Billion Penalty In CCI Case

Apple could face this hefty penalty as the CCI would take into account its "global turnover" to calculate the fine, according to a report.

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The anti-trust body commenced it probe on Apple in December 2021.
Photo source: Unsplash

Apple has not turned in the data demanded by the Competition Commision of India (CCI), with regards to an anti-trust hearing where the regulatory body found the tech giant to be exploiting its dominant market share regarding app store usage policy.

This had lead to the CCI fast-tracking its ruling on penalties to a final hearing set on May 21, with the company potentially facing a $38-billion fine. Apple could face this hefty penalty as the CCI will take into account its global turnover to calculate the fine, according to a report by news agency Reuters.

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The antitrust regulator had instructed Apple to submit documents with its financial data. The company, which has not complied with the directive, had pointed to a different case it was involved with in the Delhi High Court where it disputed the CCI penalty legislation. The firm requested the CCI to halt its hearings until the case was heard.

The regulatory body often seeks financial data from companies in order to estimate the amount that it owes in penalties when found to be violating anti-trust laws.

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The CCI order, accessed by Reuters, was issued on April 8. It stated that Apple had been "afforded adequate opportunities to file" its objections to its investigation report and further said that it had "not submitted the requisite financial information." The CCI has provided Apple with two additional weeks to submit its response.

The anti-trust body commenced it probe on Apple in December 2021 after complaints surfaced regarding the firm charging high commision rates to developers who want their apps published on Apple's 'App Store', along with its insistence on them using its in-app payments system.

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Apple argued that it has relatively smaller market dominance in India, with it making up 9% compared to Android-powered phones. In 2021, when the CCI had started its investigation, the company occupied 4% of the market share.

ALSO READ: Apple Seeks Delhi High Court Intervention To Stop CCI From Seeking Its Financials

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