By bigbreakingwire 
China’s State Administration for Market Regulation (SAMR) is considering an antitrust investigation into Apple’s App Store practices, specifically focusing on the fees charged to developers and restrictions on third-party payment systems. This move is part of China’s broader effort to regulate tech giants, adding another layer to the ongoing tensions between the U.S. and China.
Details of the Investigation:
SAMR is looking into Apple’s 30% commission on in-app purchases and its policy that prevents external payment services. The agency has been in talks with Apple executives and app developers to understand these practices better. The investigation follows global scrutiny over similar concerns about monopolistic behavior among tech companies.
Previous Legal Challenges in China:
Apple has faced similar allegations in China before. In May 2024, the Shanghai Intellectual Property Court dismissed a lawsuit accusing Apple of monopolistic practices with its App Store fees, ruling that the fees were not significantly higher than competitors and didn’t directly affect consumer prices. This prior legal outcome could influence the potential investigation’s success.
Market Reaction:
After the announcement of the potential probe, Apple’s shares dropped by 3% in premarket trading. Investors are concerned about the impact on Apple’s operations in China, a key market for the company. The drop highlights the vulnerability of Apple’s business model to regulatory changes in this region.
Global Context:
This investigation is just one of many global inquiries into Apple’s App Store practices:
India: The Competition Commission of India (CCI) has been investigating Apple for similar concerns since 2021.
Europe: Apple is under scrutiny in the EU under the Digital Markets Act, addressing app distribution and payment issues.
UK: The UK’s Competition and Markets Authority (CMA) has also investigated Apple’s App Store practices in the past, focusing on competition concerns.
Conclusion:
Although still in early stages, this investigation could significantly impact Apple’s business in China, potentially forcing the company to revise its fee structure or allow more competition on its platform. Given Apple’s previous legal successes, the company is likely preparing for a strong defense. This ongoing scrutiny of tech giants’ app ecosystems has global implications, influencing not only developers and consumers but also international trade relations.
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