Apple faces heat in India: CCI issues final warning over Rs 3 lakh crore fine

New Delhi (The Uttam Hindu): The troubles of American smartphone manufacturer Apple in India are not showing any signs of abating. The Competition Commission of India (CCI) has taken a tough stand against the company and issued a 'final warning'. The matter is related to violation of antitrust rules (anti-competitive policies) and abuse of its dominance in the market. The Commission has made it clear that if Apple does not respond immediately to its notice, it could face a historic fine. This fine could amount to $38 billion, or approximately Rs 3 lakh crore.

Final warning: no more respite

The CCI has clearly stated to Apple that it will not be given any more time to respond. If the company does not submit its explanation to the Commission by next week, it will be fined based on its global turnover. This case has been pending since October 2024, when the CCI summoned Apple after completing its investigation. The Commission has taken this strict action after receiving no satisfactory response from the iPhone maker even after more than a year.

What is the whole controversy?

This conflict between Apple and the Central Commission of India (CCI) has been ongoing since 2022. Several Indian startups and app developers filed complaints alleging that Apple was monopolizing its iOS App Store. It is alleged that Apple has established rules that harm developers' interests. The company charges developers a commission of 15 to 30 percent of app revenue. Furthermore, developers are not allowed to add external payment links or alternative payment methods to their apps, leaving them with no other way to reach iPhone users and generate revenue. In an investigation completed in 2024, the Central Commission of India (CCI) also acknowledged that Apple was abusing its dominant position.

The screw of fine on global turnover

The biggest issue in this case is the calculation of the fine. Under the new rules, the Central Commission of Inquiry (CCI) is preparing to impose a fine on Apple based on its global turnover, which amounts to approximately ₹3 lakh crore (approximately $300,000 million). Apple has challenged this rule, arguing that the fine should be based only on the revenue it earns in India, not worldwide.

Important hearing in the court on January 27

Apple had appealed to the Delhi High Court to challenge the CCI's actions and global turnover rules, attempting to halt the case. All eyes are now on the next hearing, scheduled for January 27, 2026. On that date, the court may decide whether Apple's arguments hold water and whether such a hefty fine will actually be imposed. For now, this CCI warning signals a major crisis for Apple.