China looking into Apple App Store

TheStreet’s Conway Gittens brings you the biggest news of the day, including why Apple might have a problem on its hands in China.

Transcript

00:00Apple might be getting caught up in the tit-for-tat trade war between China and the U.S.

00:04China's regulators are considering a probe into the Apple App Store

00:08And how much the tech giant is charging for developers to sell their wares via the platform

00:14according to Bloomberg China's antitrust watchdog is in the

00:18Early stages of taking a look at the cut Apple takes from developers

00:23Which could be as high as 30% other App Store rules such as prohibiting other payment services

00:29Are also under review the App Store has opened many global doors for Chinese developers like Tencent and ByteDance

00:36But it also faces numerous complaints within China and in other parts of the world that Apple

00:43Controls it with a heavy hand and exacts a heavy toll on the revenues app makers get

00:49Complaints about the App Store's policies were around before Trump trade war 2.0

00:53But China could use Apple as a pawn in its retaliation against this new round of tariffs

01:00China after all is a major market for Apple and its products

01:04Not only is the country a big manufacturing hub for the iPhone, which is Apple's top-selling product

01:10Apple also gets about 20% of its global revenues from there as well while the probe is said to be in the

01:18Pre-consideration phase sources tell Bloomberg an official full-blown antitrust investigation

01:25May not materialize

01:27While sticking with technology for our market check this Wednesday tech stocks are leading the way lower

01:32Cloud revenue at Google parent alphabet came in weaker than anticipated

01:37Sparking concerns alphabet may not be getting what it paid for when it comes to investments in AI

01:44AMD added to the gloom though the chip maker beat forecast

01:48Investors worry that may not be good enough to catch up with Nvidia in the AI chip race

01:53And that'll do it for your daily briefing from New York City. I'm Conway Gittins with the street