Apple is facing increased regulatory scrutiny from China's State Administration for Market Regulation (SAMR), which is considering a formal investigation into the company's App Store fees and policies. This potential probe is part of a broader regulatory push by Beijing and could further strain U.S.-China trade relations. The SAMR's focus on Apple's 30% commission on in-app purchases and restrictions on third-party payment services has been a contentious issue, particularly with major developers like Tencent and ByteDance. This regulatory pressure comes at a difficult time for Apple, as it grapples with declining sales in China, its largest market outside the U.S., and increased competition from local companies like Huawei.
The Direxion Daily AAPL Bull 1.5X Shares (AAPU) ETF experienced a decline, dropping 4.2% to $30.57 as of 9:00 AM on Wednesday, February 5.