The European Union forced Apple last year to open the App Store under the Digital Markets Act (DMA) work. iPhone users in the EU can install third-party app marketplaces, use third-party payment systems, and sideload apps as a result. Apple and the EU are still fighting over the DMA implementations.
As an iPhone user in the EU myself, I haven’t even bothered trying to take advantage of what the DMA does for me. I don’t want access to third-party apps or payment systems, and I’ll never sideload apps.
However, I said that Apple’s war on preserving the old ways of the App Store is doing more damage than good. Apple should open the App Store similarly in other markets and let every iPhone user and developer deal with the consequences. Most people will not change a thing.
The alternative is for more jurisdictions to investigate the App Store practices. Some of them can then pass laws with similar effects to the DMA.
China is the newest addition to the list of countries investigating Apple’s App Store practices. The government started a probe before President Trump took office, but the investigation is making the news now, in the middle of another phase of the US-China trade war. Earlier this week, China announced a formal probe into Google right after the new US tariffs on China came into effect.
The investigation into Apple isn’t as advanced, Bloomberg reports. The State Administration for Market Regulation (SAMR) is currently examining Apple’s App Store practices.
People familiar with the proceedings informed the paper that the agency has spoken with Apple officials and app developers since last year. It’s looking at Apple’s 30% fee on in-app purchases and the ban on third-party app stores and payment systems.
The agency won’t necessarily go after Apple if the conversations go well. But changes to the App Store might have to happen.
The report notes that Chinese regulators share the same concerns as other watchdogs investigating Apple’s App Store policies.
People familiar with the probe told Bloomberg that regulators believe Apple may be charging Chinese developers unreasonably high fees. Also, the unavailability of third-party app stores and payment systems on the iPhone impacts competition and hurts consumers.
The same sources said that the government may launch a formal investigation if Apple resists making changes to the App Store.
This sounds like Apple will be encouraged to open the App Store in China just like it did in the EU, but without a legal framework like the DMA in place to force Apple’s hand.
Then again, the DMA already forced Apple to develop all the tools it would need to open the App Store in other jurisdictions. Apple could probably open the iPhone in China just as easily as it did in the EU once it reaches some sort of deal with the Chinese regulator.
It’s all speculation, however. We’re looking at entirely different conditions here. Apple manufactures many of its products in China, and the government will probably want to keep Apple happy to some extent.
On the other hand, iPhone sales aren’t doing that great in China, which is a huge market for any smartphone vendor, especially Apple. The iPhone maker might want to use third-party app stores and payment systems to generate positive buzz around the iPhone.
Then there’s the US-China trade war the Trump administration reignited. Going after big tech firms like Google and Apple might be part of China’s strategy to reach a compromise.
But even without these complexities, the App Store issues would still linger. Some app developers want to pay lower fees to Apple. Others want to deploy third-party app stores and payment systems. Apple wants to keep in place the current practices and fees, as it believes its way of policing the App Store is in the consumer’s interest.
Unlike the EU’s DMA, there are no deadlines here. It’s unclear how the informal investigation will proceed, how long it will take, and when to expect App Store changes in the country.
