China’s Antitrust Scrutiny Targets Apple App Store

Apple is currently under increased legal scrutiny concerning its App Store practices, particularly within the complex regulatory landscape of China.

Chinese Consumers Challenge Apple’s App Store Practices

A cohort of approximately 55 Chinese consumers has initiated an official antitrust complaint against Apple with the Chinese regulatory authority. The consumers assert that Apple monopolizes app distribution and payment systems within China, while permitting alternative payment methods and third-party app stores in other regions.

The complaint outlines three significant allegations against Apple:

Mandating that Chinese customers buy digital products and services solely through Apple’s in-app payment system.
Imposing a commission fee that can reach as high as 30 percent on in-app transactions.
Limiting iOS app downloads exclusively to the official App Store.

This marks the second antitrust complaint lodged against Apple in China in recent years; notably, a similar case was dismissed by a Shanghai court in 2021.

Escalating Regulatory Challenges for Apple

In contrast to its policies in China, the European Union has mandated that Apple permit users to install third-party app stores on their devices, adhering to the Digital Markets Act.

Moreover, in the United States, a recent court ruling related to the Epic Games case forced Apple to allow access to external payment options and the reintroduction of Epic’s Fortnite app. While Apple has adhered to the court’s decision, it has expressed intent to continue charging fees on these external transactions, leading the presiding judge to urge Apple to stop or face potential contempt proceedings and even criminal legal implications.

This legal environment may set a benchmark that could inspire consumers in other territories to seek similar rights. For instance, in Australia, Epic Games is actively pursuing court approval to sideload its applications onto Apple devices without incurring commission charges.

Amid rising geopolitical tensions between the U. S.and China, Apple’s future in the Chinese market could be jeopardized by an unfavorable legal outcome.

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