Apple (AAPL) stock fell as much as 2% premarket Wednesday after a Bloomberg report said the Chinese government is exploring the launch of an antitrust probe into the company’s policies related to its app store policies and fees.
Chinese officials have reportedly been in discussions with Apple executives and developers since last year, according to unnamed sources cited by Bloomberg, and the antitrust agency may not launch a formal investigation if those talks are successful.
The report follows news Tuesday that China's antitrust agency launched an antitrust investigation into Google (GOOG, GOOGL).
Both reports come after after the US announced an additional 10% tariff on Chinese imports, which would hit American tech companies whose consumer devices are assembled abroad.
Most iPhones are assembled in China through its manufacturing partner Foxconn, but Apple has worked to diversify its supply chain, producing iPhones in India and Vietnam.
Apple is already struggling in the Chinese market as homegrown smartphone maker Huawei has taken that market by storm.
Apple’s revenue from China in the most recent quarter fell 11% to $18.5 billion, though CEO Tim Cook attributed about half of that drop to lower inventory.
Cook suggested that China revenue could bounce back if and when the country approves the rollout of Apple Intelligence. Apple is reportedly in talks with Chinese tech giants ByteDance and Tencent (TCEHY) about integrating its AI features into iPhone models sold in China.
China isn’t the only country where Apple faces antitrust scrutiny.
The US Department of Justice last March filed a sweeping antitrust lawsuit against the company, sending shares of the company down 4% the same day. Apple stock sank further last year after the European Union fined the company $2 billion for allegedly breaking competition laws overseas.
Tech industry advocates have hoped that the US antitrust scrutiny will ease under President Donald Trump, though the new Trump administration’s recent actions suggest that American companies may not get a free pass when it comes to big mergers and acquisitions.
Laura Bratton is a reporter for chof360 Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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