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 heighten existing trade tensions between the U.S. and China. The SAMR's focus on Apple's 30% commission on in-app purchases and restrictions on third-party payment services has been a point of contention 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 such as Huawei.
The Direxion Daily AAPL Bear 1X Shares (AAPD) ETF rose 2.07% to $16.74 as of 9:00 AM on Wednesday, February 5.