Apple is under scrutiny as China's State Administration for Market Regulation (SAMR) considers a formal investigation into the company's App Store fees and policies. The potential probe is part of a broader regulatory push by Beijing, which could exacerbate existing trade tensions between the U.S. and China. The SAMR is reportedly examining Apple's 30% commission on in-app purchases and its restrictions on third-party payment services, which have been points of contention with developers like Tencent and ByteDance. These discussions have been ongoing since last year, and if Apple does not make changes, a formal investigation may be launched.
The regulatory focus on Apple comes at a challenging time for the company, as it faces declining sales in China, its largest market outside the U.S. Apple reported an 11% drop in revenue from Greater China in the December quarter, amid increasing competition from local players like Huawei. The potential investigation adds to the regulatory challenges Apple faces globally, having already made changes to its App Store practices in Europe to comply with the EU's Digital Markets Act.
Apple's stock is currently trading at $227.91, down 2.1% from its previous close of $232.8 on February 4th.