According to information from According to Bloomberg, the Chinese government is conducting a thorough investigation into Apple's policies, suspecting monopolistic practices on the App Store.
China's state-run market regulators have launched a preliminary investigation into Apple's practices and held numerous discussions on the matter. They have targeted Apple's 30% fee on in-app purchases as well as restrictions on out-of-app payments.
Apple has become the latest victim in the new trade war between the US and China.
China is demanding that Apple end its monopolistic practices, similar to what happened in the European Union (EU). Bloomberg suggests this will be "another flashpoint" in the trade war between China and the US, coming shortly after Google also faced a similar investigation.
End the App Store monopoly, as the EU has done.
The App Store monopoly issue emerged early last year, stemming from a long-standing dispute between developers such as Tencent Holdings, ByteDance, and Apple. The current investigation focuses on whether Apple's fees are excessively high, as well as whether the ban on alternative app stores and third-party payments hinders healthy competition and negatively impacts Chinese users.
Apple is under pressure from the government to change its policy, otherwise a formal investigation will be launched. Developers have found ways to avoid Apple's 30% fee, and Apple is trying to change the policy to prevent this. Bloomberg reports that the Chinese government may not take action against Apple if current negotiations go well.
China is a crucial market in Apple's business plan, not only because of its role in iPhone production but also because of its enormous consumption potential. Although Apple is facing sales challenges due to competition from Chinese brands, the company will need to propose a solution similar to what it did with the EU to comply with the Digital Markets Act (DMA).
Currently, there are no laws in China requiring Apple to change its policies; however, the company has had to take action to obtain the necessary licenses. Not only Apple, but Google is also facing a formal investigation into anti-competitive behavior. This situation promises to be protracted, especially in light of the Trump administration's imposition of new tariffs on China.
Source: https://thanhnien.vn/sau-google-trung-quoc-nham-den-app-store-185250206065859949.htm
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