Why Apple is facing an antitrust complaint in China
What's the story
A group of 55 Chinese iPhone and iPad users has filed an antitrust complaint against Apple with China's State Administration for Market Regulation. The group, led by lawyer Wang Qiongfei, claims that Apple abuses its market dominance by limiting app distribution and payment options to its own platforms while imposing high commissions. The complaint comes amid rising trade tensions between Beijing and Washington, with both sides using tariffs and technology restrictions as tools.
Allegations
Complainants allege violations of China's anti-monopoly law
The complainants allege that Apple holds a monopoly over iOS app distribution in China, while allowing alternative payment methods and app stores in other regions under pressure from the EU and US. The complaint accuses Apple of three main violations of China's Anti-Monopoly Law: compelling consumers to buy digital goods only via Apple's in-app purchase system, limiting iOS app downloads to the App Store, and levying commissions as high as 30% on in-app purchases.
Past case
Similar case dismissed last year
This isn't the first time Wang has led a complaint against Apple. A similar case he filed in 2021 was dismissed by a Shanghai court last year. However, he expects this administrative complaint to move through regulators faster than the previous civil lawsuit, whose verdict is currently being appealed to China's Supreme People's Court.
Ongoing probes
China has initiated antitrust investigations against US tech firms
Amid tensions with US, China has launched a series of antitrust investigations against American tech firms. This includes chipmaker Qualcomm, which is being probed for its acquisition of Israeli firm Autotalks.