- China’s antitrust watchdog is reportedly preparing an antitrust investigation into Apple’s app store policies. The news comes as new tariffs on China took effect this week.
- Apple stock opened down roughly 2% on Wednesday and down more than 6% from its high price this past week.
- China opened an investigation into Google earlier on Tuesday, although few details are available.
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Apple found itself in the middle of the United States’ latest trade spat. China is exploring an investigation into the world’s most valuable company, according to a report from Bloomberg.
China’s State Administration for Market Regulation is looking into Apple’s app store practices, including its 30% cut on in-app purchases, banning third-party app stores and restricting external payment services, according to sources cited by Bloomberg.
Apple has faced similar scrutiny across the globe for its app store conduct. Apple had to change its rules to comply with the European Union’s Digital Markets Act.
How has China retaliated for tariffs so far?
The U.S. imposed 10% tariffs on Chinese imports, which took effect Tuesday, Feb. 4. In return, China announced 15% tariffs on American coal and liquified natural gas. They also put 10% tariffs on crude oil, farm equipment and other American-made vehicles.
The counter-tariffs are set to take effect on Feb. 10. China also put export controls on certain rare earth metals, including tungsten and indium.
China’s response to the latest tariffs has extended to other American companies. It put PVH Corp., the parent company of Calvin Klein and Tommy Hilfiger, and biotech company Illumina on its “unreliable entity” list. Being added to the list puts those companies at risk of facing sanctions from Beijing.
The same Chinese regulator reportedly looking into Apple officially launched an investigation into Google on Tuesday. But it didn’t give additional details into the accusations of what the search giant is doing.
Google products like Search are blocked in China, so the nation only accounts for about 1% of the company’s revenue.
Will China follow through on investigating Apple?
The investigation stems from Apple’s disputes with major Chinese developers like Tencent and TikTok parent company ByteDance, Bloomberg’s sources said. If Apple fails to make preemptive changes to its policy, China could launch a formal investigation, the sources added.
Apple shares opened Wednesday, Feb. 5, down roughly 2% on the news. The stock is down more than 6% from its high price this past week as trade tensions intensify.
