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Apple won a lawsuit accusing it of abusing its dominant position in the application market, with the Chinese court dismissing the claims Apple that Apple App Store fees were too high.
In 2021, Jin Xin sued Apple China, insisting that Apple had stopped charging the 30% App Store commission. Xin also demanded that Chinese consumers be allowed to use payment systems other than Apple's own, as well as an apology and compensation of approximately US$15,500.
Three years later, the Shanghai Intellectual Property Court sided with Apple, according to a yet-to-be-published decision obtained by the South China Morning Post.
Wednesday's ruling said it compared Apple's fees to those on other app marketplaces. The commission did not find that Apple's fees were “significantly higher” than those on Android.
It also found that there was no evidence that the fees resulted in higher prices for consumers.
In response, Xin's legal representative wrote via WeChat about his intention to file an appeal with the Supreme People's Court of China. Xin and the lawyers “firmly believe” Apple's fees are an abuse of market dominance and violate Chinese consumers' rights to a fair deal.
Apple's fees have increased operating costs for Chinese firms, said Wang Qiongfei, founding partner of law firm Kinding. This “damaged the competitiveness of Chia's Internet industry.”
The Tariff War
While winning China is good for Apple, it is not the only lawsuit it is handling against the App Store.
In the UK in July 2023, more than 1,500 developers filed a lawsuit accusing Apple that the 30% commission was too excessive and an abuse of its monopoly position. However, in April, the UK Competition Appeal Tribunal rejected Apple's request to have the case thrown out.
It is unknown when the case will be heard in court.
Apple previously fought this issue with Epic Games in a major lawsuit, and Apple largely emerged victorious. However, although the Supreme Court has effectively stopped further appeals, the two are still in court fighting to enforce the anti-steering rules.
Meanwhile in Europe, Apple had to deal with changes in legislation: the Digital Markets Act allows alternative payment methods and alternative app storefronts. Even though Apple expects fewer transactions on the App Store, it still intends to make money from iOS app developers by paying for underlying technology.
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