According to information from Bloomberg reports that the Chinese government is conducting a thorough investigation into Apple's policies, with suspicions of monopoly activity on the App Store.
China's state market regulator has launched a preliminary investigation into Apple's practices and held several discussions on the matter, targeting the 30% fee Apple collects from in-app purchases as well as restrictions on external payments.
Apple becomes the next victim in the new trade war between the US and China
China is demanding that Apple end its monopoly, similar to what happened in the European Union (EU). Bloomberg commented that this would be "another flashpoint" in the trade war between China and the US, right after Google was also investigated in a similar way.
End the App Store monopoly like the EU did
The App Store’s monopoly issue was raised early last year, stemming from a long-running dispute between developers like Tencent Holdings, ByteDance, and Apple. The current investigation focuses on whether Apple’s fees are too high, as well as whether its ban on alternative app stores and third-party payments stifles fair competition and hurts Chinese users.
Apple is under pressure from the government to change its policy or face a formal investigation. Developers have found ways to avoid Apple’s 30% fee, and Apple is trying to make changes to prevent this. Bloomberg reports that the Chinese government may not take action against Apple if current negotiations go well.
China is a key market in Apple’s business plan, not only because of its role in iPhone production but also because of its huge consumption potential. Although Apple is struggling with sales 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).
There is currently no law in China that requires Apple to change its policies, but the company has taken action to obtain the appropriate licenses. In addition to Apple, Google is also facing an official investigation for anti-competitive behavior, a situation that promises to be prolonged, especially in the context of the Donald Trump administration's new tariffs on China.
Source: https://thanhnien.vn/sau-google-trung-quoc-nham-den-app-store-185250206065859949.htm
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