Chinese regulators are considering launching an antitrust investigation into Apple over its App Store policies and fees. According to Bloomberg, China’s State Administration of Market Regulation (SAMR) has been reviewing Apple’s practices and negotiating with company representatives for over a year. The primary concerns include the 30% commission on in-app purchases and Apple’s ban on third-party payment systems.
Authorities are particularly focused on whether the fees charged to local developers are excessively high and if Apple’s restrictions on alternative app stores limit competition. This issue has reportedly intensified due to ongoing disputes between Apple and major Chinese tech firms like Tencent and ByteDance. Apple has pressured these companies to close loopholes in their apps that allow users to bypass standard App Store fees.
Rising Regulatory Pressure and Market Challenges
This scrutiny comes amid escalating US-China tensions. Recently, SAMR launched an investigation into Google, following new US tariffs on Chinese goods. Apple’s position in China remains particularly complex, as the country serves as both a key manufacturing hub and its largest overseas market. However, increasing competition from domestic brands like Huawei has led to an 11% drop in Apple’s revenue in China over the last quarter alone.
Apple has faced regulatory challenges worldwide and has made adjustments to comply with various market rules. In the European Union, for instance, the company revised its practices to align with the Digital Markets Act (DMA). However, the situation in China is unique due to the interplay of economic, political, and competitive factors, adds NIX Solutions. A formal investigation could pose significant risks to Apple’s business model, which relies on strict control over its ecosystem.
Uncertain Outlook for Apple in China
For now, discussions between Apple and SAMR continue, and the outcome could have far-reaching effects. Experts suggest that any regulatory actions could reshape not only Apple’s operations but also the structure of China’s digital market. We’ll keep you updated as more information emerges.