India has opened a major antitrust fight with Apple, and the outcome could reshape how the tech giant controls in-app payments. The case follows India’s 2024 competition law change, which lets regulators calculate penalties using a company’s global revenue instead of only local income. Because of this rule, Apple now faces a potential fine that could reach $38 billion, according to page 1 of the document.
Apple responded quickly by filing a constitutional challenge in the Delhi High Court, aiming to block the use of global revenue in its case. The company insists that penalties should apply only to earnings generated within India.
Developers Push Back Over High Fees
The complaint originally came from Match Group and several Indian startups, who argue that Apple’s in-app payment system limits competition. On page 2, the document shows they claim Apple forces all purchases through its billing system, charging fees that reach 30%, which they say hurts their revenue. Apple denies the accusations.
Developers say they have waited years for relief. Many joined this case because India’s new enforcement powers offer a rare opening. According to page 4, Match believes India’s harsh penalty model could pressure Apple in ways other countries have not achieved.
India’s Bigger Strategy: Competition and Manufacturing
India’s regulators say the new policy protects competition and helps local developers. Page 3 also highlights that the government wants Apple to expand production within India, pointing to the iPhone 16 lineup as proof that manufacturing is already growing. The large headline number helps India present itself as a strong global regulator.
However, Apple warns that retroactive use of new penalty rules—applied to conduct from years earlier—creates legal uncertainty.
Global Stakes for Apple’s Services Business
Apple’s services revenue has become a major part of its business, making this case more than just a local dispute. As the article notes on page 4, a fine based on global turnover would unsettle investors and could inspire similar actions in the EU, Japan, South Korea, and the U.S.
Court hearings begin in December, and the ruling may influence how regulators worldwide handle multinational tech companies. Apple may try to negotiate a settlement that protects its model while addressing India’s concerns, but developers fear they will still lack real alternatives for payments.
