Apple could be facing a potential Chinese antitrust investigation into its App Store policies and developer fees, reports Bloomberg.
China's State Administration for Market Regulation (SAMR) is said to have been critically examining Apple's practices and holding discussions with the company since last year, specifically about its 30% commission on in-app purchases and restrictions on external payment services, according to the outlet's sources.
Chinese regulators are said to be particularly focused on whether Apple's fees for local developers are unreasonably high. They're also examining if the company's prohibition of third-party app stores and payment methods stifles competition and negatively impacts Chinese consumers. "If Apple resists making changes, the government may launch a formal investigation," Bloomberg's sources said.
The conversations are said to stem from long-running disputes between Apple and developers such as Tencent and ByteDance. A report in August said Apple had been putting pressure on them to make significant changes to two of China's most popular apps in order to remove loopholes that circumvent Apple's typical 30% commission.
The regulatory scrutiny comes at a time of escalating tensions between the United States and China. Just this week, SAMR announced a formal investigation into Google's practices moments after new US tariffs on Chinese goods took effect.
Apple's position in China is particularly delicate. The country serves as the primary manufacturing base for iPhones and is Apple's largest market outside the United States. It's also having to compete with increasingly confident local rivals like Huawei, with Apple reporting an 11% decline in revenue from China over the holiday quarter.
Apple is no stranger to regulatory scrutiny and has already had to implement a series of changes to avoid fines and other penalties elsewhere, including revamping its store practices in the European Union to comply with the Digital Markets Act.
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Article Link: Apple Faces Potential App Store Antitrust Probe in China
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