Apple may soon find itself facing another regulatory battle, as Bloomberg reports that Chinese authorities are intensifying their scrutiny of the company’s App Store policies.
According to sources familiar with the matter, China’s State Administration for Market Regulation (SAMR) has been in discussions with Apple for over a year regarding its 30% commission on in-app purchases and restrictions on third-party payment systems. While no formal antitrust investigation has been launched yet, the report suggests that regulators are evaluating whether Apple’s policies unfairly disadvantage Chinese developers and limit consumer choice.
The growing regulatory attention comes at a pivotal time for Apple in China. The report notes that the company has already seen an 11% drop in revenue from the region over the holiday quarter, as competition from local smartphone makers like Huawei intensifies. Additionally, Apple is grappling with geopolitical challenges, as tensions between the U.S. and China continue to escalate.
Apple’s App Store policies have long been a point of contention worldwide, and the report highlights how Chinese developers, including industry giants like Tencent and ByteDance, have pushed back against Apple’s strict payment rules. Last year, Apple reportedly pressured these companies to eliminate workarounds that allowed them to bypass the standard commission fee, further fueling discontent. Regulators are now examining whether such enforcement tactics constitute anti-competitive behavior.
This isn’t the first time Apple has faced regulatory scrutiny over its App Store. In the European Union, the company has already had to implement sweeping changes to comply with the Digital Markets Act, allowing alternative app stores and payment methods.
Meanwhile, in the United States, the Department of Justice recently filed an antitrust lawsuit against Apple, accusing the company of monopolistic practices. If China follows through with a full investigation, Apple could be forced to adjust its policies yet again—this time in one of its most critical markets.
For now, the Chinese regulators are still in the deliberation phase. But if Apple resists making changes, a formal probe could be imminent, potentially reshaping how the company does business in the world’s second-largest economy.
