Shares of Iphone-maker Apple came under pressure on February 5 following reports from Bloomberg News suggesting that China was likely to launch an investigation into the company's App Store practices and policies
In response to Trump's tariffs, Chinese regulators are scrutinising fee structures and app developer policies, raising concerns of potential antitrust issues and further regulatory actions in the future, as reported by Bloomberg.
The State Administration for Market Regulation (SAMR) is examining policies such as Apple taking up to a 30 percent cut on in-app spending and blocking third-party payment services and app stores, the report stated. However, China's market regulator has not yet decided whether to formally launch an investigation into Apple, it further added.
This isn't the first time that Apple’s App Store has faced scrutiny from regulators. Previously, the European Union had opened an anti-trust probe into Apple's App store, compelling it to open up its platform in Europe under the EU’s sweeping Digital Markets Act.
If the China goes ahead with the probe, it could add to Apple’s challenges in one of its largest markets. In addition, it would also lead to escalating trade tensions between the world's two largest economies. US president Trump imposed a 10 percent tariff on Chinese imports, prompting China to retaliate with tariffs of up to 15 percent on US goods.
Alongside, it would add pressures for Apple, which is already grappling with fierce competition from local players like Huawei, which are eroding its smartphone market share. Apple’s sales in Greater China dropped 11 percent year-on-year in the December quarter.
In a similar move, China has already launched a formal probe into Google over alleged antitrust violations, although the market regulator has not provided details on the specific focus of the investigation.
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