Apple(US:AAPL) Hu Xiu·2025-10-22 05:19Core Viewpoint - Apple's "tax" on virtual goods transactions in China, which can be as high as 30%, is seen as a significant burden on consumers, leading to disparities in purchasing power compared to Android users [1][29]. Group 1: Apple's Policies and Global Reactions - Apple enforces a 30% commission on virtual goods transactions and restricts users to its App Store and payment systems, resulting in consumers paying more compared to Android users [1]. - A global movement against Apple's commission structure has emerged, with courts in the US mandating Apple to allow third-party payments and exempting them from commissions, while similar actions are being taken in the EU, Australia, Japan, and South Korea [2][11]. - The ongoing legal case in China, initiated by lawyer Wang Qiongfei, has seen the court recognize Apple's market dominance but reject claims of abuse of that dominance, with appeals currently in process [3][18]. Group 2: Collective Action and Consumer Rights - Wang Qiongfei, alongside 55 consumers, has filed an administrative complaint against Apple, marking the first collective challenge to Apple's commission in China [4][25]. - The motivation behind this collective action stems from a desire for fair trading conditions, contrasting with the high costs and low returns associated with consumer rights protection in China compared to the US [5][25]. - The administrative complaint is expected to be processed more quickly than judicial proceedings, potentially leading to faster resolutions for consumers [10][26]. Group 3: Comparative Analysis of Commission Structures - Apple's commission rates in China are significantly higher than those in other regions, with a standard rate of 30% compared to lower rates in the US and Europe [23][24]. - The comparison of Apple's commission with Android's reveals that while Apple charges a flat 30%, Android's commission can be zero in many cases, particularly outside the gaming sector [24]. - The argument that Apple's commission is justified due to market conditions in China is contested, as evidence suggests that the commission is disproportionately high compared to global standards [22][24]. Group 4: Future Implications for Consumers - If the administrative complaint succeeds, consumers could see a reduction in costs associated with digital purchases, potentially allowing for more competitive pricing in the iOS ecosystem [29]. - The total digital consumption in China's iOS ecosystem reached 165 billion yuan last year, indicating significant growth potential if the commission structure is adjusted [29]. - The outcome of the ongoing legal and administrative actions could lead to broader implications for consumer rights and market practices in China, challenging Apple's current operational model [30][32].