Tim Cook visits China amid App Store pressures

Investing.com -- Apple Inc. Chief Executive Officer Tim Cook attended a company event in China on Wednesday following the company's decision to reduce App Store commission rates in the country earlier this month.

Cook appeared at an Apple store in Chengdu, a city in southwestern China, for an event marking the company's 50th anniversary, according to a post by the municipal government on WeChat.

Apple announced last week that its standard commission on purchases will decrease to 25% from 30% for its mainland China App Store. The change took effect on March 15 and applies to apps for both iOS and iPadOS, Apple stated on its developer website. The company noted the adjustment follows discussions with the Chinese regulator.

Following the announcement, the Chinese ruling party's flagship newspaper called for Apple to further reduce App Store restrictions and address monopolistic practices. The editorial highlighted that Apple may continue to face pressure from Beijing, having previously clashed with Tencent Holdings Ltd. and ByteDance Ltd. over its iOS App Store policies.

Apple launched the App Store in China in 2010. The platform operates under stricter restrictions than the US version, with Apple removing certain apps at Beijing's request, including Meta Platforms Inc.'s WhatsApp in 2024. The company faces pressure to open its platform to allow third-party payments and external links for digital purchases.

In 2024, Apple agreed to open its mobile wallet technology to other providers free of charge for a decade in Europe through a settlement that concluded an investigation. In China, the antitrust watchdog has been examining the company's policies regarding its cut on in-app spending and its prohibition of external payment services and stores, Bloomberg News reported last year.

You May Also Be Interested In

• Apple (AAPL) PT Raised to $350 at TD Cowen
• Adobe hit by multiple downgrades after ARR concerns, CFO departure
• 'Ocean of opportunity': Wolfe initiates SpaceX at Buy ahead of historic IPO