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New Legal Challenge Targets Apple’s Chinese Operations
According to reports, 55 Chinese iPhone users have filed a formal complaint with China’s State Administration for Market Regulation (SAMR), alleging that Apple continues to enforce monopolistic practices in its App Store operations within China. The group has retained lawyer Wang Qiongfei, who previously led China’s first private antitrust case against Apple Inc. four years ago, signaling a renewed effort to challenge the company’s market dominance.
Sources indicate the complaint alleges Apple maintains a “100% dominant position” in China’s iOS app market, forcing users to download apps exclusively through Apple’s store and process payments via its proprietary system. The filing specifically targets what analysts suggest remains the world’s highest commission rate for in-app purchases, which the legal team characterizes as a “digital tax” on Chinese consumers.
Global Precedents and Local Demands
The report states that Wang’s legal team is demanding that Chinese regulators require Apple to open its platform to third-party app stores and payment providers, mirroring reforms the company has already implemented in other markets. According to regulatory filings, Apple has faced mounting pressure worldwide, including a €500 million fine from the European Commission and requirements to enable third-party stores in Japan by December 2025.
Wang reportedly argues that Chinese consumers continue paying the highest commissions globally despite these international concessions. The legal team estimates that for every $10 Apple earns in China, approximately $1 comes from App Store commissions—reportedly double the rate in European markets.
Broader Regulatory Context
The timing of the complaint appears significant, according to industry observers. The challenge emerges alongside SAMR’s recent antitrust investigation into Qualcomm’s acquisition activities, highlighting Beijing’s increasing use of competition law enforcement as strategic leverage. Analysts suggest these developments reflect a broader pattern of regulatory scrutiny amid ongoing U.S.-China trade tensions.
Market analysts note that Apple’s China revenue dropped 11% year-over-year in the first quarter of 2025, according to financial reports, as competition from domestic manufacturers intensifies. The company faces pressure from Huawei’s HarmonyOS and weakening smartphone demand, creating a challenging environment for Apple’s second-largest market.
Potential Financial Impact
According to the analysis, Apple earned approximately $6.44 billion in App Store commissions from Chinese users in 2024, representing roughly 10% of its local revenue. Sources indicate that reducing the commission rate from 30% to 10% could eliminate approximately $4.3 billion annually from Apple’s services segment, which has become increasingly important as hardware sales stagnate.
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The complaint’s success could potentially trigger what analysts describe as the most significant restructuring of Apple’s services model in China. Regulators could mandate both third-party payments and app sideloading, dismantling Apple’s control over distribution—a move that would represent a more aggressive approach than European reforms.
Strategic Implications
Industry experts suggest that pursuing Apple serves multiple objectives for Chinese authorities: demonstrating commitment to consumer protection while asserting regulatory authority over foreign technology giants. The case represents what market observers describe as a potential turning point in how China applies its antitrust framework to global platforms of Apple’s scale.
The legal challenge comes amid what reports characterize as an intensifying economic cold war between Washington and Beijing, where technology governance has become increasingly intertwined with broader strategic competition. As industry developments continue to evolve, Apple’s response to this pressure could set important precedents for how global tech companies navigate China’s regulatory landscape.
Meanwhile, related innovations in technology governance and market trends suggest increasing global coordination among regulators challenging dominant digital platforms. Apple’s predicament in China reflects this broader shift, where once-untouchable tech giants now face simultaneous regulatory pressure across multiple jurisdictions.
According to legal experts familiar with the case, if SAMR accepts the complaint, it would mark the first application of China’s antitrust framework against a foreign platform of Apple’s magnitude, signaling that global companies can no longer assume regulatory leniency in the Chinese market. The outcome will likely influence how other jurisdictions approach similar cases, potentially accelerating the global reassessment of app store business models.
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