Nov 13, 2024 11:37:00

Chinese court agrees to begin trial of lawsuit filed against Apple over posture correction app once removed from App Store

A Chinese court has agreed to hear a lawsuit filed against Apple by the developer of a children's posture correction app that was removed from the App Store in 2020 for 'fraudulent conduct.' This is the first case in which Apple has been sued by a Chinese developer over its platform operations.

Apple Faces Chinese Developer's Lawsuit in Echo of Fortnite Case - Bloomberg

https://www.bloomberg.com/news/articles/2024-11-12/apple-fights-fortnite-like-china-lawsuit-over-app-store-model

Apple Faces Epic Games-Style China Lawsuit Over App Store Practices - MacRumors
https://www.macrumors.com/2024/11/12/apple-china-lawsuit-antitrust-app-store/

According to Beijing Bodyreader Technology, the company that filed the lawsuit, a posture correction app for children that was available on the App Store was removed in 2020 due to 'fraudulent activity.'

However, after that, the company was able to publish the same app without any problems by simply renaming it, so Beijing Body Technology claims that 'App Store policies are inconsistent and the removal of the app was unjustified.' It is seeking damages of $420,000 (approximately 65 million yen) and also challenges the so-called 'Apple tax,' which Apple collects a 30% commission on sales generated by apps published on the App Store, and is seeking permission for third-party app stores and external payment links.

Unusually for the big tech giant, Apple is putting a lot of effort into its business in China, investing over 20 billion yen in Shenzhen, Guangdong Province, to establish its largest overseas research institute.

Apple opens application research lab in Shenzhen, China; Chinese state media claims it will employ more than 1,000 people and be Apple's largest research lab outside the US - GIGAZINE

When CEO Tim Cook visited China and met with the head of the Ministry of Industry and Information Technology, it was reported that the plan to make further investments came up.

Apple CEO Tim Cook reportedly promised more investment in China during meeting with China's Minister of Industry and Information Technology - GIGAZINE

On the other hand, within China,

orders have been issued banning government agencies and state-owned enterprises from using foreign products , and in October 2023, China lost its title of 'best-selling smartphone manufacturer' to Huawei.

iPhone loses its place as China's best-selling smartphone to Huawei smartphone - GIGAZINE

Earlier this year, Apple was sued by Chinese consumers for violating antitrust laws, but managed to fend it off. However, it looks like it will be an uphill battle again.