Apple shares fell by 2.6% in premarket trading due to reports of potential regulatory scrutiny in China regarding the App Store’s fees and policies. The State Administration for Market Regulation (SAMR) is investigating Apple’s practices but has not yet decided on a formal probe.
Shares of Apple Inc. experienced a decline of 2.6% in premarket trading on Wednesday, following reports from Bloomberg regarding potential scrutiny by Chinese regulators into the company’s App Store practices. This decline occurred at approximately 09:06 a.m. London time, signaling investor concern over the potential repercussions of such an investigation.
The State Administration for Market Regulation (SAMR) in China is reportedly examining Apple’s App Store policies, particularly concerning the company’s commission fees, which can reach as high as 30% on in-app purchases. Additionally, the regulators are scrutinizing Apple’s prohibitions on third-party payment systems and alternative app stores. However, it is important to note that no formal investigation has been initiated at this time.
In summary, Apple’s stock has reacted negatively to rumors of a possible investigation by Chinese regulatory bodies concerning its App Store and associated fees. Such scrutiny could have significant implications for Apple’s business model in one of its largest markets, although a formal probe has yet to be confirmed.
Original Source: www.cnbc.com
