The Delhi High Court has temporarily restrained the Competition Commission of India (CCI) from issuing final orders in its ongoing investigation into Apple's App Store practices. This follows Apple's constitutional challenge to recent competition law amendments that affect penalty provisions based on global turnover.
- Delhi High Court pauses CCI's final orders on Apple probe
- Apple challenges constitutional validity of penalty provisions
- Investigation involves app ecosystem dominance and commission fees
What happened
On Friday, the Delhi High Court directed the Competition Commission of India not to issue any final orders in its investigation into Apple's alleged anti-competitive practices related to the App Store. The court emphasized that passing final orders while Apple's constitutional challenge remains pending could lead to complications. The challenge focuses on provisions allowing penalties based on global turnover.
During the hearing, the CCI initially opposed the request but later assured the court that it would not pass a final order. Apple’s counsel argued that the regulator's planned final hearing just weeks before the constitutional matter was scheduled raised concerns about prejudicing the company. The court called on Apple to cooperate with ongoing proceedings despite granting the temporary relief.
Why it matters
The case marks a critical test of India’s competition laws and the regulatory reach over global technology companies operating in the country. Apple is accused of abusing its dominance by mandating the use of its proprietary payment system and charging up to 30% commissions on in-app purchases, allegations that have resonated with various Indian startups and industry groups.
The legal challenge specifically targets 2023 amendments to the Competition Act that broaden penalty provisions to potentially impose fines based on a company’s global turnover, which Apple argues is unconstitutional. This dispute raises important questions about regulatory authority and the balance of power in India’s digital economy.
What to watch next
The Delhi High Court’s constitutional bench is expected to hear Apple’s challenge to the competition law provisions in July 2026. The outcome of this hearing will likely determine the future direction of the CCI’s investigation and enforcement powers against global firms.
Meanwhile, the CCI investigation continues its fact-finding process with cooperation from Apple and other stakeholders. Industry observers will closely monitor how Indian regulators handle large multinational platforms amid evolving legal frameworks aiming to address market dominance and fair competition in the app ecosystem.