China weighs probe into Apple’s app store fees, practices
- 05 February, 2025
- 13:57
China’s antitrust watchdog is laying the groundwork for a potential probe into Apple Inc.’s policies and the fees it charges app developers, part of a broader push by Beijing that risks becoming another flashpoint in the country’s trade war with the US, Report informs via CNBC TV18.
The State Administration for Market Regulation is examining Apple’s policies, which include taking a cut of as much as 30% on in-app spending and barring external payment services and stores, people familiar with the matter said. Agency officials have spoken with Apple executives and app developers since last year, said the people, who asked for anonymity to discuss sensitive moves.
The conversations stem from long-running disputes between Apple and developers such as Tencent Holdings Ltd. and ByteDance Ltd. over iOS store policies — a source of tension between the US company and regulators worldwide. While Beijing has since 2024 targeted the practices of US tech firms from Nvidia Corp. to most recently Alphabet Inc.’s Google, regulators may not formally move against Apple if the current conversations go well.
Though the examination of Apple’s practices began before US President Donald Trump took office, they’re now colliding with a series of tit-for-tat moves between Beijing and the Trump administration, which is threatening to ignite a global trade war. On Tuesday, the watchdog announced a formal probe into Google and allegations of anticompetitive behavior just seconds after new US tariffs on China came into effect.
Chinese regulators believe that Apple may be charging local developers unreasonably high fees, the people said. They think the barring of third-party app stores and payment methods also hinders competition and hurts local consumers, the people said. If Apple resists making changes, the government may launch a formal investigation, the people added.
Apple’s shares slid more than 2% in pre-market trading. A spokesperson for the company didn’t respond to a request for comment. The SAMR didn’t respond to a faxed request for comment.
Apple has long policed its app ecosystem to preserve quality and security around the world. But it’s now in the crosshairs of regulators globally and has had to implement a series of changes to avoid fines and other penalties. Last year, the company revamped its store practices in the European Union to meet the requirements of the Digital Markets Act. That’s led to third-party app marketplaces and outside payment methods.