Tech giant Apple (AAPL) is fighting back against a new Indian antitrust law that could potentially lead to a massive $38 billion fine. The law, introduced in 2024, allows India’s Competition Commission (CCI) to calculate penalties based on a company’s global revenue, not just what it earns in India. Apple has now filed a 545-page petition with the Delhi High Court, asking judges to declare this part of the law illegal. It’s the first formal challenge to this rule, which Apple argues is unfair and overly harsh.
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The case is tied to an ongoing antitrust battle that began in 2022, when Match Group (MTCH) (owner of Tinder) and several Indian startups accused Apple of abusing its power over the iOS app market. Investigators later concluded that Apple had engaged in “abusive conduct,” such as blocking third-party payment processors and charging fees of up to 30% for in-app purchases. Apple denies any wrongdoing, and the CCI hasn’t yet issued a final decision or penalty.
In its legal filing, Apple compares the penalty system to fining a stationery store for a violation that only happened in its toy section, arguing that India should only fine the specific business unit responsible for the violation, and only based on its Indian revenue. Apple also pointed out that the CCI recently applied the rule retroactively in another case, which prompted it to act now to avoid the same risk. Although Apple says it’s a smaller player in India compared to Google’s (GOOGL) Android, its user base in the country has quadrupled in the past five years. The case will be heard on December 3.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 21 Buys, 12 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $289.17 per share implies 4% upside potential.
