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Apple may face class action law suit over App Store monopoly in China

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In the third quarter of last year, China overtook the United States as Apple’s largest market in terms of App Store revenue. Photo: AP

Apple Inc may face legal action for allegedly monopolising iPhone apps in China, the No 1 market for its App Store, after a Beijing law firm called for Chinese app developers to join a proposed class-action lawsuit against the American tech giant.

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Beijing Dare & Sure Law Firm claims that Apple may be violating China’s antitrust laws because its unique iOS operating system does not allow iPhone users to download apps anywhere other than its App Store.

“There is a possibility for Apple to abuse its dominant position in the iOS operating system, damaging the legal rights of app developers, operators and consumers,” the law firm said on its official website, asking Chinese app developers which believe they have been wrongfully treated by Apple to join a proposed class action lawsuit.

A dozen Chinese app developers, mostly in gaming and video, have already joined the group since the notice was posted on Sunday and the number is growing daily, the law firm said.

“The question over Apple’s alleged monopoly is not new and it is not only in China. Some Chinese companies have been asking us for advice over the past years but they were hesitant to take real action because they were afraid of being banned from the App Store eternally,” Lin Wei, a partner with the law firm told the South China Morning Post.

It is hard to say whether or not Apple is a monopoly because it has the right to manage its App Store based on laws and to keep everything in order
Zhao Ziming, Analysys

He added that the law firm only launched the class action after finding some clients that agreed to sue. Typical complaints include apps being delisted from App Store without adequate explanation for the reason,and the requirement to use Apple’s in-app purchases rather than any other third-party payment methods.

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