Apple Inc. is facing intensified scrutiny from India's Competition Commission over alleged anti-competitive practices in its App Store operations. The regulator has issued a final warning to the technology company, demanding a response within one week to avoid unilateral legal proceedings.
According to a Reuters report from January 15, Apple has delayed responding to the commission's inquiries for approximately one year. The antitrust case centers on Apple's App Store policies, which Indian authorities contend may violate competition regulations.
India's penalty calculation method uses a company's global revenue to determine potential fines. Apple has argued this approach is unfair and is challenging the rules in a separate case before the Delhi High Court. If applied in this antitrust matter, the methodology could result in penalties reaching $38 billion for Apple.
The next hearing in Apple's challenge to the penalty rules is scheduled for January 27. Apple did not provide comment to Reuters regarding the latest developments in the antitrust case.
Despite these regulatory concerns, financial analysts maintain generally positive assessments of Apple's stock. Approximately 60% of analysts covering the company recommend it as a Buy, with a median one-year price target of $300 representing potential 16% growth.
In recent analyst activity, Evercore ISI reaffirmed Apple as its "Top Pick" around mid-January, increasing its price target from $325 to $330. The firm cited strong iPhone demand and minimal impact from memory cost inflation as factors supporting improved earnings estimates.