While Apple already has to deal with new European regulations regarding the App Store, a new front is opening up in China. A local developer has just launched legal proceedings which could well shake the iOS ecosystem in the Middle Kingdom. This case, which is eerily reminiscent of the famous Epic Games trial, raises fundamental questions about Apple’s business practices in its second largest global market.
Chinese developer challenges Apple practices
Beijing Bodyreader Technology Ltd, creator of an application for children’s news, has filed a lawsuit against Apple before the Beijing Intellectual Property Court. The company is seeking approximately $420,000 in damages following the removal of its application from the App Store in 2020. This case marks the first time that Apple has had to defend its practices against a Chinese developer in the country.
The developer contests Apple’s decision which justified the withdrawal of the application by citing “dishonest behavior”. Surprisingly, Bodyreader later managed to release an identical app under a different name, “Qilin Century”, which is still available on the App Store. This inconsistency in the application of the rules is at the heart of the plaintiff’s argument.
Issues that go beyond the simple Bodyreader case
This case is strongly reminiscent of the 2021 Epic Games v. Apple lawsuit, as it calls into question the entire business model of the App Store. Bodyreader notably contests the 30% commission levied by Apple on in-app purchases and requests authorization to use third-party payment systems, like the recent obligations imposed by the European Union via the Digital Markets Act.
The timing is particularly delicate for Apple, which faces increased competition in China, particularly from Huawei in the premium segment and with HarmonyOS. Earlier this year, the Cupertino company had already had to manage an antitrust lawsuit brought by a Chinese consumer, which it had won while requesting the removal of mentions concerning its “dominant position” on the market. The closed hearings began on Thursday, November 7 and could conclude quickly.
This situation could set an important precedent for other Chinese developers and potentially influence how Apple operates in one of its most crucial markets, where the company must constantly maintain a delicate balance between its business interests and regulatory requirements. local. Maybe Apple will have to open its store in China like it did in Europe?
