In a surprising move, Apple is asking a Chinese court to modify its written decision in an antitrust lawsuit Apple itself won. This unusual request highlights the delicate balance Apple must navigate as an American company operating in China, the world’s leading smartphone market.
According to a ruling by the Shanghai Intellectual Property Court in May, Apple did not abuse its market power and has not charged unfairly high App Store commission fees.
Apple has filed a petition asking the Supreme People’s Court to make tweaks to select sentences in a ruling that ended a dispute over the cut of app revenue it takes from most developers, according to an excerpt of the filing seen by Bloomberg News. The iPhone maker wants the nation’s highest court to strike references to Apple’s “dominant position” from a decision written by a lower court, which in May tossed out the lawsuit due to a lack of evidence. It’s also objecting to a phrase suggesting “unfair pricing may hurt consumers.”
The characterization of Apple’s “dominance” — in an official court decision — may get cited in future filings or cases at a time when regulators globally are closely scrutinizing tech giants. At issue is the fee that Apple and its rivals charge developers for hosting their apps on the store — as high as 50% in the case of popular Android mobile games in China, versus a general 30% in much of the rest of the world.
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MacDailyNews Take: Words matter. Semantics are the foundation of law.
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