Apple is challenging India’s new antitrust penalty law, which could result in a $38 billion fine. This marks the first challenge against the law that allows the Competition Commission of India to use global turnover for penalties. Apple denies wrongdoing in an ongoing antitrust battle with Match and Indian startups.

The company argues that the law allowing the use of global turnover for penalties is arbitrary and unjust. Apple faces a potential penalty of $38 billion, based on 10% of its global turnover. The CCI has yet to make a final decision in the case, but Apple is seeking to have the law declared illegal.

Apple cites an example of a toy seller running a stationery business to argue against a penalty based on total turnover. The company believes penalties should be based on the specific unit violating antitrust law, not global turnover. The plea will be heard on December 3, with experts suggesting it may be difficult to challenge the law.

Apple is concerned about the retrospective imposition of penalties under the new law, as seen in an unrelated case where the rules were applied a decade later. The company has seen significant growth in its smartphone base in India over the past five years. The CCI found Apple was restricting third-party payment processors for in-app purchases, leading to the ongoing antitrust battle.

Read more at Yahoo Finance: Apple contests India’s antitrust penalty law with risk of $38 billion fine, filing shows