China's antitrust watchdog is reportedly gearing up for a potential probe into Apple's policies and App Store fees, as per a Bloomberg News report on February 5th, citing informed sources.
This development follows China's recent scrutiny towards U.S. entities such as Google, farm machinery manufacturers, and the parent company of fashion label Calvin Klein, following the activation of fresh tariffs on Chinese imports.
The State Administration for Market Regulation in China is said to be examining various facets of Apple's policies, which include a commission of up to 30% on in-app purchases, limitations on external payment services, and App Stores.
Apple's shares witnessed a 2.6% drop in premarket trading in the U.S.
Reportedly, Chinese regulators have engaged in dialogues with Apple's executives and app developers since the previous year.
Both Apple and China's antitrust regulator have not yet responded to Reuters' request for comments.
In a statement on Tuesday, the regulator suggested that Google might have violated the country's anti-monopoly laws, without elaborating on the specifics of the alleged breaches.
A Tsinghua University professor, Zhang Chenying, hinted in an article in the state-owned People's Daily newspaper that Google's Android business could be a focal point of the investigation due to allegations of leveraging its dominance to impose limitations on Chinese mobile manufacturers.
In a separate move, China's Commerce Ministry disclosed that PVH Corp, the parent company of brands such as Calvin Klein and Tommy Hilfiger, and U.S. biotechnology firm Illumina have been added to its "unreliable entity" list.