Apple Appeals to Chinese Supreme Court Over the Winning Verdict

Apple Appeals to Chinese Supreme Court Over the Winning Verdict
Photo: 08.07.2024 249

The tech giant considers the phrasing of the court's verdict to be misleading.

US tech giant Apple has appealed to the Supreme People’s Court of China and requested the rectification of the verdict of an anti-monopoly case it won against a Chinese consumer.

The iPhone maker asked the court to delete the “Apple has a dominant market position in the Chinese software market” from its verdict because it implies that the company charges unfair and high feeds, Yicai learned from an insider familiar with the matter.

Apple’s attempt to change a verdict that was in its favor is probably because the statement may be quoted in some future cases when international regulators are closely reviewing the company, which could bring Apple troubles, an analyst told Yicai.

In January 2021, a Chinese consumer surnamed Jin sued Apple because the company was charging a commission of 30 percent of the transaction amount for purchases on the App Store, which could only be completed through Apple Pay. Jin demanded a compensation of CNY100,000 (USD13,790) and a public apology.

At the end of May, the Shanghai Intellectual Property Court said it could not ascertain the specific costs of Apple on the operation of the App Store, given its huge operating system, therefore it could not calculate the difference between costs and commissions on the App Store. Without the number, the court was unable to determine if the commission was too high.

As a result, the Shanghai IP Court ruled that Apple does have a dominant market position in the Chinese software market but did not abuse it.

China is Apple’s second-largest market after the US. However, Apple’s revenue from the Chinese market fell 8 percent to USD16.4 billion in the first quarter of the year from a year earlier as the competition from local smartphone manufacturers got fiercer.

Source:  Yicai Global

digital markets  China 

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