China’s market regulator is taking a closer look at how Apple runs its App Store, specially the fees it charges app developers and the App Store policies. This could lead to an official investigation if things don’t go smoothly in talks between Apple and the regulators.
Here’s what’s happening: China’s regulators are concerned about two main things:
- Apple takes up to 30% of the money spent in-app purchases
- Apple doesn’t allow other app stores or payment methods on iPhones
This has been a sore point for big Chinese tech companies like Tencent and ByteDance (who own TikTok) for a while now. The timing is tricky because the US and China are in the middle of a trade dispute, with both sides putting new taxes on each other’s goods.
Apple is already in a tough spot because China is super important to them:
- It’s where most iPhones are made
- It’s Apple’s biggest market outside the US
Apple has already had to change some of its App Store rules in Europe because of similar concerns there. The company says its App Store rules are there to keep things safe and high-quality for users. And it all might be right as there’s already an adult content app available on iPhone in the EU because of the third-party App Store.
The SAMR may launch a formal investigation if Apple resists making changes to its current practices. As of now, the regulatory body has not responded to requests for comment, and Apple has not issued a statement regarding the matter.
More here.