China threatens App Store probe in retaliation for trade tensions
Tim Cook (left) and Trump (right)
Following the introduction of trade tariffs by the US, China is said to be considering an antitrust investigation into Apple’s App Store practices.
The new US trade tariffs ostensibly imposed on China will be paid by US businesses and consumers, not China or any other foreign country. But they mean higher prices for Americans, which will mean a decrease in sales, so China has been announcing retaliatory measures.
According to Bloomberg, those measures may now also include China launching an investigation into Apple’s App Store fees and practices. This is despite the country having already investigated the App Store and concluding in May 2024 that Apple was not abusing its market position.
The new probe, as yet not officially announced, is said to involve China’s State Administration for Market Regulation. It is to review Apple’s policies, specifically concentrating on its 30% commission on in-app purchases — which China previous ruled was in-line with other companies’ fees.
It’s also said to be planning to investigate Apple’s restrictions on using third-party payment services and app stores. Chinese regulators have been in discussions with Apple and app developers since the May 2024 ruling, but as yet neither China nor Apple have confirmed the new investigation.
Nonetheless, Apple’s shares were down 3% on the news.
What China has confirmed is that Google will be investigated under the country’s anti-monopoly laws. The Chinese Commerce Ministry has separately placed the parent company of Calvin Klein and Tommy Hilfiger on its “unreliable entity” list.
As for the impact on US consumers of President Trump’s tariffs, Apple has previously been able to get exemptions. However, it did not get these consistently, and it has so far not escaped them this time.
Separately, as tariffs are being applied to goods from different countries in different amounts, certain regions are attempting to position themselves to benefit. India, for instance, has cut key import taxes in order to attract more manufacturing from firms such as Apple.
