Apple faces Chinese competition probe into App Store policies

(Sharecast News) - Shares of Apple were under pressure in pre-market trade on Wednesday after Bloomberg reported that Chinese regulators were weighing a potential investigation into the charged on the App Store.

The speculation, which came from anonymous sources close to Beijing's State Administration for Market Regulation, comes amid an escalating trade war between Beijing and Washington following the weekend announcement by Donald Trump of an additional 10% tariff on Chinese imports.

According to Bloomberg, China's antitrust watchdog has been looking at Apple's policies since before Trump took office, though the potential probe is likely to be wrapped up in escalating political tensions between the two governments.

China is specifically examining Apple's App Store fees, which include taking as much as 30% of in-app spending, along with alleged anti-competitive practices like preventing third-party app stores and payment methods.

If Apple does not make adjustments then a formal investigation is likely, Bloomberg's sources said.

The tech firm has faced backlash in other markets, such as the European Union, over alleged anti-competitive practices. Just last year, EU regulators declared that the company should allow app developers in Europe to steer consumers to third-party alternatives to open up choice for consumers under the new Digital Markets Act.

Apple futures were down nearly 3% at $226.22 by 0627 in New York.