A Celebration Turned Regulatory Battleground

Apple CEO Tim Cook's visit to the Taikoo Li store in Chengdu, China, as part of the company's 50th anniversary tour, quickly lost its celebratory mood. China's state-run media outlet People's Daily criticized Apple's recent App Store commission reduction as "insufficient" and called for greater platform openness. Last week, Apple announced it would lower its standard App Store commission in mainland China from 30% to 25%, a decision made after "discussions" with Chinese regulatory authorities.

However, according to Bloomberg, People's Daily published an editorial immediately after the commission cut announcement, arguing that Apple must further ease App Store restrictions and address its "monopolistic" practices. This signals continued pressure from Beijing authorities, as Apple has been in conflict with Chinese tech giants like Tencent and ByteDance over iOS App Store policies.

China's Version of European Regulation

The demands from Chinese authorities mirror the structure of the European Union's Digital Markets Act (DMA). EU antitrust regulators forced Apple to allow third-party app stores and open iPhone NFC chips, leading Apple to partially permit alternative payment systems and sideloading in the European market starting in 2024.

Bloomberg reports that China's antitrust watchdog is investigating Apple's policies, with particular focus on:

• Allowing Third-Party Payment Systems: Currently, in-app purchases of digital goods must go through Apple's In-App Purchase (IAP) system, where Apple collects a commission. Chinese authorities are demanding the option for external payment links and payment method choices.
• Supporting Sideloading: Opening pathways to install apps outside the App Store. This is an area Apple has consistently refused, citing "security and privacy" concerns.

Timing Coincides with Manufacturing Shift

This pressure comes at a significant moment as Apple diversifies its manufacturing base from China to India, Vietnam, and other locations. Since 2023, Apple has moved a substantial portion of iPhone production to India, with the country's production share estimated at 15-20% as of 2025. The Chinese government views Apple's moves unfavorably and appears to be using regulatory pressure to secure negotiating leverage.

Multiple foreign media outlets interpret the People's Daily editorial as reflecting the official position of the Chinese Communist Party, as the newspaper serves as the party's official organ and represents government policy.

The Dilemma of iPhone Dependence and Negotiating Power

China is one of Apple's largest markets. In the Q4 2024 earnings announcement, Tim Cook stated that "iPhone achieved its best quarter ever, with all-time record revenue in every geographic segment." iPhone revenue reached $85.2 billion (approximately 120 trillion won), showing "simply staggering" demand.

However, high dependence on the Chinese market is a double-edged sword. Apple cannot maintain market access without regulatory compliance in China, but opening the App Store would directly hit Apple's core revenue model in its Services segment. Apple's Services revenue (App Store, Apple Music, iCloud, etc.) exceeded $90 billion annually as of 2024, with App Store commissions accounting for a significant portion.

[AI Analysis] Power Shift in Platform Economy

This situation represents a new phase in the power struggle between Big Tech platforms and state authority. While the EU pressured Apple through a legal framework (DMA), China is demanding the same results using market access as leverage. Apple's precedent of allowing sideloading in the EU provides Chinese authorities with evidence that it is "technically feasible."

Future prospects compress into three scenarios. First, Apple is likely to gradually accept European-style opening policies in China as well. However, a compromise of first allowing limited sideloading (e.g., enterprise apps only) under the pretext of security concerns is most likely. Second, if negotiations fail, App Store operations in China could be restricted, or in the worst case, non-tariff barriers to iPhone sales could emerge. Third, this conflict could evolve into another front in the U.S.-China technology hegemony competition.

As Apple marks its 50th anniversary, asserting that "iPhone will remain at the center of people's digital lives for a long time to come," who controls that center is no longer just a corporate matter. This can be read as a signal that the rule-makers of the platform economy are shifting from Silicon Valley to Beijing and Brussels.