India continues to seek a $38 billion fine against Apple! Musk gasps in shock: nearly fell for it.
In April 2026, India's Competition Commission (CCI) formally rejected Apple's request for a stay, planning to impose an antitrust penalty of up to $38 billion on Apple, citing violations of data localization rules and non-compliance with payment system regulations. The final hearing is scheduled for May 21. Almost simultaneously, on May 19, India’s Minister of Heavy Industries, Kumaresh, publicly confirmed that Tesla had officially abandoned its plan to build a factory in India. The timing of these two events occurring back-to-back makes it hard not to link them together.
The figure of $38 billion is no exaggeration. In 2024, India urgently revised its Competition Act, expanding the basis for antitrust fines from “revenue generated in India” to “global revenue.” A simple calculation reveals: Apple’s annual profit in India is only about $3.6 billion. If fined based on global revenue, the amount would equate to Apple having to work “for free” in India for 14 years—directly wiping out nearly one-third of Apple’s global annual profit.
This rule effectively sends a message to foreign enterprises: every rupee you earn today in India could be seized tomorrow through unpredictable and arbitrary measures.
Even more alarming is the legal mechanism behind it. In 2024, after the CCI had already launched an antitrust investigation into Apple, India’s parliament quietly passed new legislation changing the fine base from “revenue in India” to “global revenue,” including retroactive provisions. In short: the investigation began first, then the rules were changed—and once changed, they could be applied retroactively to actions taken even before the investigation started.
Tesla’s negotiations with India over building a factory date back to 2021. Musk initially showed strong interest in the Indian market—during Prime Minister Modi’s visit to the U.S. in 2023, he met with Musk personally, and India offered a customized incentive: “Invest $500 million within three years, and enjoy a low tariff rate of 15%.” Yet ultimately, Tesla announced in May 2026 that it was completely abandoning its plans to build a factory in India.
India’s strategy of “initial incentives followed by later extraction” is highly destructive: while other countries attract foreign investment through favorable policies, India attracts investment by saying, “Come in first, then we’ll deal with you.” The result? A series of foreign companies have been severely penalized. But India clearly underestimated one thing: corporate vigilance is faster than it imagined.
Tesla’s decisive exit wasn’t because it didn’t want to make money—but because it saw too clearly: contracts may be meaningless, rules can be changed overnight, and laws can be interpreted retroactively. Under such conditions, even the most promising market data or the lowest tariff incentives are useless.
Original source: toutiao.com/article/1866346317696007/
Disclaimer: This article represents the personal views of the author.