Apple faces $38 billion fine threat in India

Apple’s stance in the competition investigation in India has exposed the company to a high risk of sanctions. The process has reached a critical stage as Apple did not submit the necessary financial data within the scope of the investigation carried out by the Competition Commission of India (CCI). According to information provided by Reuters, the final hearing will be held on May 21, and this date will be an important turning point that will determine the course of the investigation.

The investigation, launched by CCI in October 2024, is based on the allegation that Apple puts pressure on developers with the in-app purchasing system on the App Store. The regulator argues that developers are being forced to use Apple’s own payment infrastructure. While it is claimed that this situation has restrictive effects on competition, a different picture is drawn on the Apple side. The company states that the Android operating system is by far more common in the Indian market and iPhones have a relatively low market share.

Despite this, market data indicates that Apple’s position in India has strengthened over time. According to data shared by Counterpoint Research, the company’s share in the smartphone market has reached 9 percent by 2025. This increase causes Apple’s influence in the country to be discussed more than in the past.

Apple’s failure to provide data affects the course of the investigation

In CCI’s latest decision, it is stated that Apple was given sufficient opportunity to provide the necessary financial information. Despite this, it is stated that the company still does not share this data, which plays a critical role in calculating a possible penalty. The institution emphasizes that due to the lack of information in question, it is difficult for the process to proceed smoothly. Apple, on the other hand, follows a different line of defense at this point and reminds that it has previously discussed the legal framework regarding competition penalties in India in a separate case.

According to the company’s assessment, the amount of fines that may be imposed as a result of this investigation could reach up to $38 billion. This figure indicates a remarkable size not only for India but also for the global technology sector. However, the final decision of the regulatory authority will be shaped in line with the data to be presented and the defenses to be made.

This is not the first time tensions between Apple and the Indian government have occurred. Previously, the request to add the state-supported application called Sanchar Saathi to iPhones as pre-installed was on the agenda, but Apple did not respond positively to this request. In the following period, the Indian administration took a step back from this obligation. However, there is no similar flexibility in the current competition investigation and the process proceeds in a more rigid manner.

In addition to all this, the CCI has given Apple an additional two weeks to submit its responses before the final hearing. While it is a matter of curiosity what kind of strategy the company will follow during this period, the decision is expected to affect not only Apple but also the ongoing discussions on a global scale regarding application store policies. In this context, the possibility that developments in India may serve as an example for similar regulatory initiatives is not excluded.