Delhi High Court asks govt, CCI to justify Apple penalty

HC seeks explanation on why penalties are based on global turnover instead of India revenue

- Krishna Yadav

Apple has challenged the recent amendments to the Competition Act allowing penalties up to 10% of global turnover.

(AP)

The Delhi High Court issued notices to the Union government and Competition Commission of India (CCI) on Monday directing them to file an affidavit within a week, explaining the rationale behind imposing penalties based on a firm's global turnover rather than its India revenue.

The court was hearing a plea by Apple Inc, which challenged amendments to the Competition Act that allow penalties to be computed on a firm’s global turnover.

A bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela declined to pass any order on the CCI's request that Apple be directed to submit its financial details by 8 December. It also did not comment on Apple’s plea seeking protection from future coercive steps by the regulator, saying it did not wish to express any view at this stage.

The matter is likely to be heard next on 16 December.