Chinese market regulators are closely examining Apple's App Store practices and may launch an antitrust investigation, according to sources familiar with the matter. The State Administration for Market Regulation (SAMR) has been in discussions with Apple since last year regarding its App Store policies.
At the center of the scrutiny are Apple's 30% commission fees on in-app purchases and its restrictions on external payment services. Chinese regulators are particularly concerned about whether these fees place an unreasonable burden on local developers.
The regulatory attention stems from ongoing disputes between Apple and major Chinese tech companies like Tencent and ByteDance. In August, Apple reportedly pressured these companies to modify their popular apps to close loopholes that bypassed the standard commission structure.
This development comes during a period of heightened US-China tensions. SAMR recently launched an investigation into Google's practices shortly after new US tariffs on Chinese goods took effect.
The situation is particularly complex for Apple given China's strategic importance - it serves as the company's main iPhone manufacturing hub and represents its largest market outside the US. Apple has already seen an 11% decline in Chinese revenue during the recent holiday quarter, while facing growing competition from domestic rivals like Huawei.
Apple has previous experience adapting to regulatory demands, having recently modified its practices in the European Union to comply with the Digital Markets Act. The company may need to consider similar adaptations in China if it wants to avoid a formal investigation.
Should Apple resist making changes to its policies, Chinese regulators may proceed with an official antitrust probe, according to sources close to the matter.