They say great art reflects its time. When it comes to Apple’s business, just as the iMac and iPod matched the zeitgeist, the company must now develop its business to meet the complex demands of a divided, post-globalist world struggling with economic and climate insecurity. Apple should bear that in mind as it faces its latest regulatory nightmare, this time in China, where its practices concerning in-app purchases and external payment services face fresh scrutiny.
Apple has been in disputes about in-app payments with big Chinese developers Tencent and ByteDance for some time. It argues that loopholes in their apps let them avoid the in-app commission it demands. With China’s State Administration for Market Regulation (SAMR) commencing scrutiny of Apple’s business practices, regulators may advise Apple to make changes to its approach. And it faces the threat of a formal investigation if it resists those recommendations.
Tension and mistrust
But this isn’t just a business practice investigation. The scrutiny comes at a time of growing tension between China and the United States. The US has implemented tariffs on some Chinese imports, which China is expected to reciprocate. Apple is undeniably a proud US firm, and while it has a strong and mutually profitable business relationship in China, it continues to face challenges. In the US, tariffs directly threaten Apple’s business. Apple is stuck between a rock and a hard place.
