China complaint challenges Apple’s App Store fees and restrictions
A group of iPhone and iPad users in China has filed a complaint with the country’s market regulator alleging that Apple’s App Store limits access to digital content, enforces use of Apple’s in‑app payment system and charges commissions of up to 30% on purchases—while restricting alternative app stores and payment options. The filing adds fresh regional pressure on Apple’s app distribution model.
Key allegations
- Restricted access: Apple allegedly limits availability of certain content and apps through App Store rules.
- Payment lock‑in: Users say Apple forces use of its own payment system for in‑app purchases.
- High commissions: Up to 30% fees on in‑app purchases; small developers may qualify for reduced rates in some programs.
- No real alternatives: Complaints cite a lack of third‑party app stores or competing payment rails on iOS in China.
Why it matters
- Consumer impact: Limited payment choice can affect pricing and access to services; stricter review policies may reduce app availability.
- Developer economics: Commission structures and feature restrictions can influence monetization and local pricing.
- Regulatory scrutiny: China’s market regulator could investigate practices similar to probes elsewhere, potentially prompting changes.
Global context
- EU Digital Markets Act (DMA): Apple has begun enabling alternative app marketplaces and certain alternative billing options within the EU, under new obligations.
- South Korea: Telecom law changes require support for third‑party billing; Apple and Google implemented tailored compliance with adjusted commissions.
- US litigation: The Epic v. Apple case led to limited anti‑steering changes (allowing links/out‑of‑app sign‑ups), while core App Store policies largely remain.
What could happen next
- Regulator review: China’s authority may request information from Apple and affected stakeholders before deciding on next steps.
- Possible remedies: Outcomes could range from maintaining status quo to requiring more payment choice or greater distribution openness for iOS in China.
- Developer guidance: Publishers should monitor any interim guidance and consider pricing/payment scenarios under potential new rules.
References:
China State Administration for Market Regulation (SAMR) ·
Apple App Store Review Guidelines ·
Apple Small Business Program ·
Coverage of the complaint (German)
Note: Apple has not publicly commented on this specific filing at the time of writing. Details may evolve as regulators review the complaint.
Discussion: Should regulators require Apple to allow third‑party app stores and billing on iOS in China—or do the current rules best protect security and privacy?
