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The outlet's sources claim that since last year, China's State Administration for Market Regulation (SAMR) has been closely analysing Apple's business practices and having conversations with the company, particularly regarding its 30% in-app purchase commission and limitations on external payment services.
Whether Apple's fees for local developers are excessively high is reportedly a major concern for Chinese regulators. Additionally, they are investigating whether the company's ban on third-party app stores and payment methods hinders competition and has a detrimental effect on Chinese customers. "If Apple resists making changes, the government may launch a formal investigation," according to Bloomberg's sources
Apple has an especially precarious situation in China. The nation is Apple's largest market outside of the US and serves as the main location for iPhone manufacturing. Additionally, it must contend with local competitors like Huawei who are growing more self-assured; during the holiday quarter, Apple reported an 11% drop in revenue from China.
Apple has previously had to make a number of adjustments to avoid fines and other penalties overseas, like updating its store processes in the EU to comply with the Digital Markets Act. The company is no stranger to regulatory scrutiny.
Apple has previously had to make a number of adjustments to avoid fines and other penalties overseas, like updating its store processes in the EU to comply with the Digital Markets Act. The company is no stranger to regulatory scrutiny.
