Apple could soon face an investigation in China about how it runs its App Store, according to Bloomberg. A black and white image of the Chinese flag with the Apple logo in the background. China’s market watchdogs have been looking into Apple’s practices since last year. They’re concerned about the 30% fee Apple charges for in-app purchases and how the company doesn’t allow other payment options, sources told Bloomberg.
The focus is on whether these high fees are fair to Chinese app makers. There’s also worry that by not letting other app stores or payment methods in, Apple might be hurting competition and not giving Chinese users the best deal. If Apple doesn’t change its ways, China might officially look into it, the sources added.
This all started because of ongoing disagreements with big Chinese companies like Tencent and ByteDance. There was a report in August saying Apple was pushing these companies to change how their apps work in China to stop them from dodging that 30% fee.
The timing is tricky because things are tense between the US and China. Just this week, China started looking into Google’s business practices right after new US taxes on Chinese products began. Apple has a lot at stake in China. It’s where most iPhones are made, and it’s a huge market for Apple outside the US. But local companies like Huawei are getting stronger, and Apple’s sales in China dropped by 11% over the holiday season. Apple has faced similar issues in other places too. They’ve had to change how they do business in places like Europe to follow new laws and avoid penalties.
Note: Discussions about this topic can be found in our Politics section on the forum. You can read the thread, but you need to have made at least 100 posts to join the conversation.