A collective of 55 Chinese iPhone and iPad users submitted a grievance to China’s market regulation body on Monday, as per a lawyer representing the group. They assert that Apple is leveraging its market dominance to impose restrictive app distribution and payment systems, while also levying significant commissions.
The claimants, under the leadership of lawyer Wang Qiongfei, accuse Apple of monopolizing iOS app distribution in China. They contend that the company allows alternative payment methods and app stores in other regions due to regulatory pressures from the European Union and the United States. However, they believe this flexibility is not extended to the Chinese market.
The complaint points out three key infringing practices by Apple that are believed to contravene China’s Anti-Monopoly Law. The first is the alleged compulsion for consumers to buy digital goods exclusively through Apple’s In-App Purchase system. The second is the purported restriction of iOS app downloads to the App Store. Lastly, the plaintiffs accuse Apple of imposing commissions of up to 30 percent on in-app purchases.
Apple has yet to provide a comment in response to these accusations.
This represents the second time Wang has spearheaded a complaint against Apple. A similar lawsuit was filed in 2021, but it was ultimately dismissed by a Shanghai court the following year.
Wang anticipates that this administrative complaint will progress more rapidly through the regulatory system compared to the preceding civil lawsuit. He is currently appealing the verdict of the previous lawsuit to China’s Supreme People’s Court. The court heard the arguments for the appeal in December, and a decision is still forthcoming.
Recent tensions between China and Washington have prompted China to initiate a series of antitrust investigations aimed at US tech companies. This includes chipmaker Qualcomm, which is currently under scrutiny for its acquisition of Israeli firm Autotalks.
What are the main allegations against Apple?
The main allegations against Apple are that it is forcing consumers to buy digital goods exclusively through its In-App Purchase system, restricting iOS app downloads to the App Store, and imposing up to 30 percent commissions on in-app purchases.
Who is leading the complaint against Apple?
The complaint against Apple is being led by lawyer Wang Qiongfei on behalf of 55 Chinese iPhone and iPad users.
What precedent exists for this type of complaint against Apple in China?
A similar case was filed by Wang Qiongfei against Apple in 2021, but it was dismissed by a Shanghai court. Wang is currently appealing this decision to China’s Supreme People’s Court.
