Apple is once again under legal scrutiny in China as a Beijing-based developer, Bodyreader Technology Ltd., challenges the tech giant’s App Store practices. The case, recently accepted by Beijing’s Intellectual Property Court, represents a significant challenge in one of Apple’s most vital markets.

Bodyreader, the developer of a posture-correcting app for children, alleges that Apple’s decision to remove its app from the App Store in 2020 was unjustified. The developer is now seeking 3 million yuan ($420,000) in damages and is pushing for sweeping changes to Apple’s operating model.

The dispute arose after Apple removed the Bodyreader app, citing alleged “dishonest” behaviour. However, the developer argues that the decision was inconsistent, noting that an identical app submitted under the name “Qilin Century” was approved and remains available on the App Store. Bodyreader claims this highlights the arbitrary nature of Apple’s app approval process.

Additionally, the developer has criticized Apple’s restrictive policies, particularly requiring developers to use the company’s in-app payment system, which comes with a 30% commission. Bodyreader calls for the court to mandate significant changes to Apple’s practices, including allowing third-party app stores and external payment systems—moves that could profoundly disrupt Apple’s tightly controlled ecosystem.

This lawsuit is the latest in a series of global challenges to Apple’s App Store practices. Similar accusations have surfaced in multiple jurisdictions, including the high-profile legal battle with Epic Games, the creator of Fortnite, in 2021. Epic accused Apple of stifling competition and innovation by maintaining strict control over its App Store. Analysts suggest the Bodyreader case could increase scrutiny of Apple’s operations in China, echoing the growing tensions between the tech giant and Chinese developers.

Closed-door hearings for the case began last Thursday, and a resolution is expected soon. If successful, Bodyreader’s lawsuit could set a precedent, encouraging other Chinese developers to challenge Apple’s policies.

China has long been a cornerstone of Apple’s success, serving as both a massive consumer market and a critical manufacturing hub. However, the company’s influence in the region is facing mounting challenges. Domestic brands like Huawei are gaining traction in the premium smartphone market, eroding Apple’s dominance. At the same time, regulatory pressures in China are intensifying as the government pushes for stronger support of local businesses.

Despite its previous ability to navigate China’s complex regulatory environment, Apple’s position is becoming increasingly precarious. Earlier this year, Apple faced an antitrust complaint from a Chinese consumer. While the company managed to fend off the challenge, it had to appeal certain findings, signalling a growing vulnerability in its operations.

Apple has also faced recent disputes with Chinese tech giants ByteDance and Tencent regarding the use of alternative payment systems in Douyin and WeChat mini-programs. These conflicts highlight the broader friction Apple is encountering as it tries to maintain its hold on the market.

The Bodyreader lawsuit arrives at a time when Apple is diversifying its manufacturing operations to reduce its reliance on China, expanding into regions like India. Nonetheless, China remains a critical market for Apple, both as a consumer base and production hub.

If the Beijing Intellectual Property Court sides with Bodyreader, the outcome could have far-reaching consequences. The case might inspire other developers to take legal action against Apple. The court’s decision is awaited with keen interest, as it can reshape how Apple conducts business in one of its most pivotal markets.

This legal challenge underscores Apple’s delicate balancing act in China, where the company must adhere to local regulations while maintaining its commercial interests. With increasing competition from local brands and mounting regulatory pressure, Apple’s once-dominant position in the Chinese market appears to be under significant strain.