Apple Faces Antitrust Scrutiny in China Amid Trade Tensions

Apple Inc. (NASDAQ: AAPL) is under review by China’s antitrust watchdog, the State Administration for Market Regulation (SAMR), over its App Store policies and developer fees, according to a Bloomberg report on Wednesday.

Key Focus of the Review

Regulators are examining Apple’s 30% commission on in-app purchases and its ban on external payment services and third-party app stores. Chinese authorities suspect that these policies:

• Impose excessive fees on local developers.
• Restrict competition in the digital market.
• Harm consumer choice by limiting payment alternatives.

Market Impact

• Apple shares fell 2.58% in premarket trading following the report.
• Discussions between Apple executives and Chinese regulators have been ongoing since last year, suggesting the review predates the current U.S.-China trade war escalation.

Tensions with U.S. Tech Firms

The scrutiny of Apple follows China’s recent antitrust probe into Alphabet Inc.’s Google (NASDAQ: GOOGL) over alleged anti-competitive practices. These investigations come amid heightened trade frictions, following:

• The U.S. imposing 10% tariffs on Chinese imports this week.
• China retaliating with its own tariffs and regulatory actions against U.S. companies.

Possible Outcomes

• If Apple fails to address regulators’ concerns, China could launch a formal antitrust investigation.
• The case could exacerbate trade tensions between the U.S. and China, potentially impacting Apple’s operations in its largest overseas market.

Investors are closely watching how Apple navigates regulatory pressure in China, which remains a crucial market for both sales and manufacturing.