Apple shares fell on Wednesday after a report from Bloomberg that Chinese regulators are considering opening a formal probe into the iPhone giant app store fees and policies.
Apple share went down to 2.66% at 9:34 am. London time in premarket trading.
The state administration for market Regulation(SAMR) is looking into policies that include Apple taking a cut of as much as 30% on app spending, as well as blocking app stores.
The Chinese Market regulator has not decided whether to formally open an investigation into Apple, according to the report.
The news is coming out at a time where the trade tensions between the U.S and China take a new twist under the administration of President Donald Trump, one month into his second term.
However, Apple has maintained that its strict App store policies are designed to protect users and improve their experience across its products.
Apple’s store has come under severe scrutiny from regulators across the globe. It was forced to open up its app store in Europe, under the Sweeping Digital Markets Act in the EU. What this means is that it now allows non- Apple companies to offer app stores in Europe and app developers can as well use third- party payment system.
If the China probe goes ahead, it would cause further headache for Apple in one of its biggest markets. The Cupertino giant is already facing stiff competition from local players like Huawei that are eating away at its smartphone market share. Apple sales in Greater China declined 11% year-on-year in the December quarter
