Apple Faces Potential App Store Antitrust Probe in China

Apple could be facing a potential Chinese antitrust investigation into its App Store policies and developer fees, reports Bloomberg.

App Store Blue Banner Chinese Flag Feature
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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Top Rated Comments

surferfb Avatar
9 months ago

If you read the article, it says the investigation has been going on for a while now, I don’t think it’s that.
I'm sure it was completely a coincidence that it was announced the same day an investigation of Google was announced and immediately following the introduction of tariffs against the country. China couldn't possibly have seen those coming, or be mad about the TikTok ban. It's completely above board and they're looking out for Chinese consumers being subject to high prices.

Since the App Store is one of many stores in China. Let's look at some of the major stores in China:

Tencent MyApp (应用宝) – 30% for IAP; negotiable for high-volume developers.

Huawei AppGallery – 30% for IAP, 15% for subscriptions after one year.

Xiaomi App Store – 30% for IAP.

Oppo App Market – 30% for IAP.

Vivo App Store – 30% for IAP.

Baidu Mobile Assistant – Typically 30% but may vary based on agreements.

360 Mobile Assistant – Similar 30% model but flexible for some developers.


That's odd, looks like Apple's rates are completely in line with other stores in China. Wonder why they're being singled out for investigation then?

Let's be clear - this is retaliation, which is obviously within China's rights to do (and not a bad place to do it, to be honest).
Score: 14 Votes (Like | Disagree)
Digital Dude Avatar
9 months ago
Apple’s entire business model is based on ‘unreasonably high’ prices. ?‍♂️
Score: 11 Votes (Like | Disagree)
ginkobiloba Avatar
9 months ago
This is mostly a strike-back at Trump’s tarrifs. China also opened an investigation into Google the same day
Score: 9 Votes (Like | Disagree)
pugxiwawa Avatar
9 months ago

For absolutely no good reason beyond Cheeto Ego
Well the US just got much stronger border protections from Mexico and Canada, for absolutely nothing. So I would say it's a good reason and easy win.
Score: 8 Votes (Like | Disagree)
sw1tcher Avatar
9 months ago

Typical method of an authoritarian country.
TIL that the U.S. is an authoritarian country

https://www.macrumors.com/guide/apple-vs-doj/
Score: 7 Votes (Like | Disagree)
Unregistered 4U Avatar
9 months ago

Typical method of an authoritarian country.
Just copying the model set by another authoritarian region. :)
Score: 5 Votes (Like | Disagree)