Copyright Benzinga
China is one of the key markets for Apple Inc (NASDAQ:AAPL) moving forward. With fears of tariff pressure from China and the United States, the technology giant now faces a new antitrust suit in China that could slow down its progress in the region. AAPL shares are at critical resistance. Get the market research here. What Happened: Momentum for Apple's new iPhone 17 in China has been strong, which might make an antitrust suit a potential headwind. An antitrust lawsuit was filed with China's State Administration for Market Regulation on Monday, according to a report from Reuters. The suit claims that Apple has a monopoly on its iOS app in China by forcing users to purchase digital goods only through the in-app purchase system, restricting iOS app downloads, and charging up to 30% in commissions on in-app purchases. The lawsuit is led by lawyer Wang Qiongfei, who previously filed a similar suit against Apple and lost in 2021. The lawyer represents a group of 55 Apple users in China who have iPhones and iPads. The suit claims that Apple allows other payment methods in markets such as the United States and Europe, following previous regulatory pressures in those regions. While he lost the previous lawsuit against Apple in a Shanghai court last year, Wang told Reuters that he expects this suit to move faster than the previous one. Wang is also appealing the previous ruling, with the Chinese Supreme Court hearing arguments in December and still awaiting a decision. Apple did not respond to Reuters when asked about the new antitrust suit. Read Also: China Sets Sights On Apple, Nvidia And Other US Tech Companies As Trade Tensions Rise Why It's Important: The new antitrust suit comes at a particularly tough time for technology companies in China. Apple faces a brewing trade war between China and the U.S. that could make its products more expensive to export and import in these regions. China has also launched several antitrust investigations against U.S. tech companies, including one against Apple supplier Qualcomm over its acquisition of Israeli tech company Autotalks. A recent report from Counterpoint Research noted that the iPhone 17 outsold the iPhone 16 by 14% in China and the U.S. during its first 10 days of release. In China, the base iPhone 17 is a top seller and was sold out in parts of the country. Apple CEO Tim Cook recently traveled to China, where he said the technology company will "increase investment" in the country. During his visit, Cook met China's Minister of Industry and Information Technology, Li Lecheng, who said China would create a favorable business environment for companies like Apple. China represents one of Apple's key markets, serving as a major manufacturing hub and accounting for approximately 17% of the company's annual revenue. AAPL Price Action: Apple stock is up 0.2% to $262.81 on Tuesday. Shares hit a new 52-week high of $265.29 earlier in trading on Tuesday morning. Apple stock is now up 7.8% year-to-date in 2025. Read Next: Gene Munster Says iPhone 17 Cycle Could Drive 8%+ Growth Through 2026 As Apple Stock Soars To All-Time High Photo: Shutterstock
