Apple in China: Behind the Double Standard "Apple Tax" Lies a Game of Monopoly and Antitrust

Apple in China: Behind the Double Standard "Apple Tax" Lies a Game of Monopoly and AntitrustSince the iPhone 4s opened up the market for Apple, "Apple phones" have become the top choice for young people buying phones. Especially in China, more than 5 out of 10 young people choose Apple, yet, facing such a massive market, Apple doesn't cherish it, instead, they start to "act up"

Apple in China: Behind the Double Standard "Apple Tax" Lies a Game of Monopoly and Antitrust

Since the iPhone 4s opened up the market for Apple, "Apple phones" have become the top choice for young people buying phones. Especially in China, more than 5 out of 10 young people choose Apple, yet, facing such a massive market, Apple doesn't cherish it, instead, they start to "act up".

From Apple's tax policy, we can see that in the US, Apple charges only 15% commission to developers with annual income under $1 million, and even those with annual income exceeding $1 million only pay a commission of 30%. In Europe, according to the Digital Markets Act enacted by the EU, Apple's commission on European developers cannot exceed 17%. However, for Chinese developers, Apple charges a 30% "protection fee" across the board, which stands in stark contrast to its tax policies in Europe and the US.

This "double standard" behavior has sparked widespread dissatisfaction among Chinese developers. They believe that Apple, leveraging its monopoly over the iOS system, is implementing "invisible" monopoly against Chinese developers. Not only do they have to face the hefty "Apple tax," they also have to endure Apple's constantly changing rules and policies.

Apple's "double standard" behavior towards the Chinese market not only hurts the interests of Chinese developers but also damages the feelings of Chinese consumers. As developers need to pass on development costs to consumers, Apple's "price gouging" will ultimately be paid by Chinese consumers.

So, how should we respond to Apple's "double standard" behavior in China?

The Root of Apple's "Double Standard": Monopoly and Market Specificity

Apple's rampant behavior in China is certainly related to its monopoly status, but it's also inseparable from the specific nature of the Chinese market.

On the one hand, China's vast territory and huge market size make it difficult for Apple to resist the temptation of "profit-seeking." Apple's tremendous success in the Chinese market has made them believe they can dictate the rules without any restraint, even disregarding the interests of Chinese developers.

On the other hand, China's current legal environment is relatively weak, with insufficient antitrust enforcement, which gives Apple an opportunity to "take advantage." In the absence of strong consumer rights awareness among Chinese consumers, Apple's "double standard" behavior in the Chinese market seems to be unchecked.

Responding to Apple's "Double Standard": Collaborative Efforts to Maintain Fair Competition

To truly curb Apple's monopolistic behavior, we need the joint efforts of the government, businesses, and consumers.

1. Government Strengthening Antitrust Enforcement

The government needs to strengthen antitrust enforcement, improve relevant laws and regulations, and create a fair competitive environment for businesses and consumers. China needs to follow the example of the EU, conduct antitrust investigations into Apple, and punish their illegal behavior.

2. Businesses Actively "De-Applifying" to Protect Their Rights

Businesses should courageously protect their legal rights through legal channels, and say "no" to monopoly with their actions. Chinese enterprises should break free from excessive reliance on Apple, explore other channels to diversify their business risks, and avoid being "strangled" by Apple.

3. Consumers Voting with Their Feet, Choosing More Friendly Platforms

Consumers can "vote with their feet" and choose platforms that are more friendly to developers, putting pressure on Apple to feel the competitive landscape of the Chinese market.

4. Enhancing the Rule of Law, Creating a Regulated and Transparent Market Environment

In the long run, to truly curb Apple's "double standard" behavior, we need to comprehensively enhance China's rule of law and create a more regulated and transparent market environment.

Conclusion: Upholding Rights, Embracing Opportunities

Behind Apple's "double standard" lies a game of power between multinational companies and emerging markets. As the host country, China needs to take a more mature and rational stance, neither humbly submissive nor solely profit-driven. We must learn to uphold our rights through legal means, while also embracing globalization with an open mind. Only by doing so can we earn respect and win the future in this game.

Information Sources:

• Jiupai News: Apple Tax: 17% in Europe, 30% in China, Where Does Apple's "Confidence" Come From

• Apple's "Double Standard" in China Sparks Outrage

• ...

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