Apple Down Nearly 3% In PreMarket! China Launches Antitrust Probe

Is the U.S--China Trade War 2.0 Heating Up? After the U.S. announced additional tariffs, China has launched a series of antitrust investigations against major U.S. tech giants—and now it's Apple's turn.

China's antitrust watchdog is laying the groundwork for a potential probe into Apple Inc.'s policies and the fees it charges app developers, Bloomberg reported. The State Administration for Market Regulation is examining Apple's practices, which include taking as much as a 30% cut on in-app spending and barring the use of external payment services and third-party app stores, according to people familiar with the matter. Agency officials have been in discussions with Apple executives and app developers since last year.

Chinese regulators believe that Apple may be charging local developers unreasonably high fees.    Insiders have noted that the prohibition of third-party app stores and external payment options hinders fair competition and harms Chinese consumers. They added that if Apple refuses to make changes, the Chinese government might initiate a formal investigation.

It is noteworthy that following President Trump's announcement of an additional 10% tariff on Chinese goods, Beijing promptly responded with reciprocal measures—imposing tariffs on U.S. products, restricting the export of rare earth metals that are critical for the defense industry, and launching an antitrust investigation into Google, even though Google's primary search engine is inaccessible in China. Previously, China also initiated an antitrust probe into Nvidia, indicating that tensions between the U.S. and China have once again escalated. However, if relations between the two nations eventually ease, Chinese regulators are unlikely to formally commence an investigation.

Apple has recently become a frequent target of regulatory scrutiny. Under the EU Digital Markets Act, for example, Apple is required to open up its App Store to third-party app markets and external payment systems—a mandate that has affected its profit margins. Additionally, poor iPhone sales in China and a lag in AI innovation have further constrained Apple's stock performance this year.