China’s antitrust regulator is reportedly considering opening an investigation into Apple’s App store, with Apple’s share price dipping following the news.
The State Administration for Market Regulation (SAMR) has been speaking to Apple executives and developers about the App Store’s payment policies since last year, according to Bloomberg. The SAMR is particularly weighing a probe of the commission Apple takes on in-app purchases, as well as its ban on external payment services and app stores.
The SAMR also launched an antitrust investigation into Google this week, hours after the United States imposed a blanket 10% tariff on Chinese goods. “The unilateral imposition of tariffs by the US seriously violates the rules of the World Trade Organization,” said China’s Ministry of Finance.
“It is not only unhelpful in solving its own problems, but also damages the normal economic and trade cooperation between China and the US.”
While talks are still ongoing between the SAMR and Apple’s representatives, the SAMR is reportedly set to begin an official investigation if Apple refuses to make changes.
Apple said that revenue from China dropped by 11% to reach US$18.5 billion last quarter, below analyst estimates of $21.6 billion. CEO Tim Cook said that the majority of the decline was due to inventory issues.
The company’s iPhones are largely built in China by its manufacturing partner Foxconn.
Apple’s share price fell by around 2% in pre-market trading following the news, though stocks recovered later in the day.
Its share price (NASDAQ: AAPL) closed at US$232.47, down slightly from its previous close at $232.80 after recovering. Apple’s market capitalisation is $3.49 trillion.
