China considering antitrust investigation into Apple, likely as leverage in trade war

China is considering opening an antitrust investigation into Apple’s App Store commissions, mirroring those already carried out in the US, EU, and elsewhere.However, it’s likely that the Chinese government is simply raising the possibility as a form of leverage in the latest trade war instigated by the Trump administration … Investigations and lawsuits elsewhere Apple has already faced antitrust investigations and action around the world, through a mix of legislators and lawsuits from customers and developers.The core argument has been that because Apple had monopolistic control over the sale of iPhone apps, it was free to set its own commission rates and terms, and developers had no choice but to agree.

The most dramatic change happened in the EU, where the Digital Markets Act required Apple to allow iPhone and iPad apps to be sold through third-party app stores.Apple did its best to make this option as unattractive as possible for developers in what has been described as an act of malicious compliance, and it’s likely that it will be forced to change its terms.In the US, Apple suffered a smaller loss, when a case brought by Epic Games resulted in the company being told that it must allow developers to link to alternative ways of purchasing in-app content.

The company again complied in a way that would protect its commissions, and the judge in this case has indicated that Apple is likely to be found in breach of her ruling.There have also been similar investigations and lawsuits in a number of other countries, including Australia, India, Korea, and Japan.China considering antitrust investigation There have been mumblings before about possible antitrust investigations in China.

A lawsuit was filed by an iPhone owner back in 2021, but that case was dismissed when the court ruled that Apple’s commissions were in line with those on Android app stores, and there was no evidence that consumers ended up paying higher charges.However, reports that the country’s antitrust regulator is considering opening an investigation.Likely leverage in trade war While China has long murmured about the possibility of antitrust investigations into Apple and other US companies, the timing of this news is unlikely to be coincidental.

While Trump hasn’t yet acted on his threatened chip tariffs, he yesterday imposed a blanket 10% import duty on goods arriving from China.The Chinese government responded by imposing tariffs on some US imports, and literally announced an antitrust investigation into Google.The announcement about Apple followed shortly afterwards.

A similar thing happened when Trump instigated a trade war against China during his first term, with Apple a key target for retaliation.That being the case, it’s likely that China wants to initially hold out the threat of as leverage, and then if that doesn’t achieve anything it will proceed – at that stage using the threat of as stakes in the trade war.  You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day.

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