Apple Falls into Chinese Antitrust Investigation Over App Store Policies
Apple might soon face an antitrust investigation in China over its App Store practices and the fees it charges developers, according to a report by Bloomberg.
China’s State Administration for Market Regulation (SAMR) has reportedly been scrutinizing Apple’s operations, particularly its 30% commission on in-app purchases and its restrictions on third-party payment options. Discussions between Apple and Chinese regulators have been ongoing since last year, with SAMR now looking closely at whether the company’s practices are unfair to local developers and harmful to competition.
The regulators are said to be focusing on two primary concerns:
- Developer Fees: Are Apple’s fees for Chinese developers too high?
- Third-Party Restrictions: Does Apple’s ban on external app stores and payment services stifle competition and hurt consumers?
Sources cited by Bloomberg indicate that SAMR could launch a formal investigation if Apple doesn’t address these concerns.
This scrutiny is part of a larger, longstanding tension between Apple and developers like Tencent and ByteDance. In August, reports surfaced that Apple was pressuring these companies to make significant changes to some of China’s most popular apps to close loopholes that allowed them to avoid paying Apple’s 30% commission.
A Delicate Situation
The regulatory pressure comes amid escalating tensions between the U.S. and China. This week, China announced an investigation into Google immediately following the introduction of new U.S. tariffs on Chinese goods.
For Apple, the stakes are particularly high. China isn’t just a massive market—it’s also where the majority of its products, like the iPhone, are manufactured. Apple’s revenue from China dropped by 11% during the holiday quarter, and it faces growing competition from local tech giants like Huawei.
Apple has dealt with regulatory challenges before, adapting its app store practices in regions like the European Union to comply with the Digital Markets Act. Whether the company can navigate the challenges in China without further damaging its position remains to be seen.
This developing story has significant implications for Apple’s business in one of its most critical markets. Stay tuned for updates as more details emerge.
