Apple’s App Store Reportedly Facing Investigation by Chinese Regulators

Apple is reportedly facing another regulatory probe, this time in China’s crucial market.

China’s State Administration for Market Regulation (SAMR) is considering a formal investigation into the tech giant’s App Store fees and policies, Bloomberg News reported Wednesday (Feb. 5), citing sources familiar with the matter.

According to the report, the sources say SAMR is looking into Apple policies such as taking cuts of up to 30% of in-app spending and blocking third-party payment services, both things that have gotten the company into trouble with regulators before.

Officials from SAMR have been in talks with Apple executives and app developers since last year, the sources say, with the conversations centering around ongoing disputes between Apple and developers like Tencent and ByteDance over App Store policies.

It’s possible that if these talks go well, the SAMR would back off an investigation. However, a formal probe could begin if the company resists making changes, sources told Bloomberg.

The report notes that while the SAMR’s efforts began before President Donald Trump’s term began, they are butting up against tension between the Chinese government and the White House. The Trump administration has instituted new tariffs on China, while the SAMR has launched an official competition investigation into Google.

The Apple investigation, if it were to proceed, would mark another instance of regulatory scrutiny into the App Store that Apple has faced around the world.

The company last year was forced to open the store in Europe in accordance with the European Union’s Digital Markets Act, allowing other companies to offer their own app stores and developers to use third-party payment providers.

Apple is facing other headaches in China. The company has lost market share to local smartphone makers after the launch of its iPhone 16, in part due to the lack of Apple’s artificial intelligence (AI) features on phones sold in China.

Apple has been slower to introduce its AI offerings compared to its rivals, rolling out its Apple Intelligence suite in the wake of the debut of the iPhone 16 in September.

“The company has not been able to add AI features to iPhone 16s sold in China due to local restrictions. China’s government requires generative AI operators to secure permission before they can roll out a product,” PYMNTS wrote last month. “That’s left Apple trying to land partnerships with Chinese companies to introduce its AI feature.”