I have a legitimate question here. Is the writing in this story merely terrible, or is the social situation in modern Japan such that a teenage boy would even momentarily contemplate following an order to turn over their phone to some woman just because she's wealthy? Let alone do so with a submissive remark, and then not complain after she deliberately damages it. And I am serious here. I couldn't even conceive of 16-year-old-me doing anything other than laughing in her face. I was easily, and frequently, bullied but it required either violence or the credible threat of it.
While the situation in the game and other hentai/doujin/anime/manga works are most likely largely exaggerated, bullying, at least a few years ago, was a real problem in Japan AFAIK. Not sure how it is right now, but I know that at least some years ago, you were expected to exchange pleasantries and even follow direct orders from your seniors in school, even if you weren't even a year apart from them.
Now, I am basing this in large part on pop culture - anime and manga mostly, but the whole "throwing thumb tacks into your shoes", destroying your notebooks, or even writing something along the lines of "go and hang yourself" on your desk, while also leaving flowers as if your desk was somebody's grave, they are so prevalent, even in serious, psychological dramas, that there must've been
something to these. You would also have trouble with finding allies, as anyone siding with you would likely become the next target. Schools OTOH would rather do nothing, or resort to just giving the bully a slap on the wrist with some self-important speech on empathy, while ignoring the problem at large - like schools usually tend to do, only more - because of the whole "reputation" morality of Japan.
Basically, AFAIK, in Japan saying one thing and thinking something completely different is not seen as hypocrisy, but rather as a proper etiquette. Long story short - Japan doesn't have much land, so people are pushed together like sardines in a tin can, and when you start speaking your mind you risk creating a social conflict, which can then disrupt the entire society. So for the sake of society, only speak what's "right", and keep your personal thoughts to yourself and for your family. This creates this whole "reputation" morality, so schools or even parents, would rather swipe the problem under the rug and pretend that nothing is really happening, rather than seeking help and risking others knowing that there was some kind of problem. One of the funnier examples I remember from uni was - IIRC - when they told us that during the economic bubble, Japanese govt insisted that their exaggerated GDP values stem from the fact that "they calculate their GDP differently", which supposedly implied that they have different math there.
Not sure how it is right now though, but at least a couple of years back I remember our uni lectors telling us that bullying was a very real problem, so I can't imagine it being completely made up as a plot device. By the same token, I can totally see someone submitting to the chick from the game, in fear of drawing her social circle's ire to themselves. It's all of the above, but add to it the benefit of having a shitload of money to silence authorities, basically making their precious little flower practically untouchable by school, nor by law.
Mostly fictionalized, but I would say that definitely based in some part in reality.