Apple Seeks to Alter Chinese Antitrust Ruling It Already Won

Background

1. Initial Ruling:

   • In May 2024, the Shanghai Intellectual Property Court ruled in favor of Apple in a case challenging the App Store's 30% commission fee.
   • The court found that Apple's fees were not significantly higher than those of app stores on Android devices.

2. Court's Language:

   • The written ruling included references to Apple's "dominant position" in the market.
   • It also mentioned that "unfair pricing may hurt consumers."

Apple's Request

1. Appeal to Supreme People's Court:
   • Apple has asked the Supreme People's Court of China to remove specific phrases from the ruling.
   • The company wants to eliminate references to its "dominant position" and the potential consumer harm due to "unfair pricing."

Reasons Behind the Request

1. Precedent Concerns:

   • Apple is concerned that the current language in the ruling could set a precedent for future antitrust lawsuits.
   • Acknowledgment of Apple's dominant market position could be used against it in other legal challenges globally.

2. Market Share Implications:

   • Apple's market dominance is a key factor in numerous antitrust cases.
   • In the US, Senator Elizabeth Warren has argued that Apple's 50% share of the smartphone market constitutes a monopoly.
   • In the EU, Margrethe Vestager has also described Apple as a dominant player in the high-end smartphone market.

Potential Implications

1. Legal Strategy:

   • By removing references to its dominance, Apple aims to reduce the risk of the ruling being used to support similar claims in other jurisdictions.
   • This move is part of a broader strategy to manage its legal exposure in antitrust cases worldwide.

2. Future Lawsuits:

   • If the Supreme People's Court agrees to Apple's request, it could weaken the basis for future antitrust claims against the company.
   • Conversely, if the request is denied, the ruling could strengthen the position of plaintiffs in ongoing and future lawsuits.