Apple Seeks Changes to Court Ruling in China Lawsuit Dispute

Apple Seeks to Amend Court Ruling in China Amid App Store Dispute

Tech giant Apple is making a bold legal move in China, seeking to amend a court ruling in a lawsuit that it had previously won. The company has filed a petition with the Supreme People’s Court of China to make specific changes to a decision that ended a dispute over its share of app revenue from developers.

The initial ruling by a lower court in May dismissed the lawsuit due to insufficient evidence but included language that Apple is now seeking to have removed. The company is particularly focused on eliminating references to its “dominant position” in the market and objections to the court’s mention of “unfair pricing [that] may hurt consumers.”

Apple’s concern stems from the potential impact that the portrayal of its market dominance in an official court document could have on future legal challenges or regulatory scrutiny. The debate revolves around the commission fees Apple charges developers for app store hosting, which can be as high as 50% for popular Android games in China compared to a typical 30% globally.

This legal maneuver underscores Apple’s cautious approach in China, where it faces stiff competition from domestic tech giants like Huawei Technologies Co. and must navigate a complex regulatory environment. China is not only Apple’s largest international market but also its primary production hub.

Globally, Apple and Google are facing increased regulatory scrutiny over their app store policies. Apple has been defending its fee structure, arguing that the commissions are justified by the security and benefits the app store provides to users and developers. This defense is part of broader legal battles in the U.S., Europe, South Korea, and Japan.

In May, a Shanghai court dismissed a lawsuit accusing Apple of abusing its market position through its 30% commission on in-app purchases and restrictive payment methods. While the court found the evidence insufficient to support the claim of abuse, the language used in the ruling has prompted Apple to seek modifications to avoid any potential legal and regulatory repercussions in the future.