Apple could be facing a possible Chinese antitrust investigation into its App Store commissions. The Chinese government is likely using the possibility of such an investigation as leverage in its trade war with the U.S. China’s possible investigation into the App Store comes on the heels of similar investigations in the US, EU, and other regions.
Apple has faced antitrust investigations in numerous countries around the globe, due to complaints by developers, customers, and legislators. The investigations were fueled by accusations that Apple has monopolistic control over the sale and distribution of iPhone apps, freely setting its own commission rates and terms, with developers being forced to comply.
Apple was forced to allow iPhone and iPad apps to be sold through third-party app stores in the European Union, thanks to the EU’s Digital Markets Act (DMA). Apple has since been accused of maliciously complying with the DMA rules, as it has allegedly made the third-party option as unattractive as possible, and the company could be forced to change its terms.
In the United States, Apple was forced to allow developers to link to alternative methods of buying in-app content and subscriptions, thanks to legal action brought by Fortnite publisher Epic Games. Apple has received criticism on how it is complying with the ruling in that case, as it attempts to hold on to its cut of the action, which could end in Apple being found in breach of the judge’s ruling.
The Cupertino firm has faced similar investigations and lawsuits in several other countries, including Australia, Korea, Japan, and India.
Bloomberg reports that China’s antitrust regulator is considering opening an investigation.
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.
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.
While the possibilities of antitrust investigations into Apple and other US companies by China has long been rumored, this time around, the government’s threats may be a way to gain leverage in the country’s trade war with U.S. President Donald Trump.
While Trump has not yet implemented his threatened tariffs on chips, on Tuesday he imposed a blanket 10% import duty on all goods from China. The Chinese government immediately responded with its own tariffs on some U.S. imports and also announced an antitrust investigation into Google. An announcement about Apple followed shortly.
We saw something similar happen during President Trump’s first term, leaving Apple in the gunsights of both sides.
While China will likely only use the threat of an investigation into Apple as leverage, if the trade war continues, the government will likely start using the threat of an antitrust finding against Apple as the stakes rise in the trade battle.