Apple has fired at least five employees at its China app store for business misconduct, including unauthorized interactions with mobile game developers, according to an internal investigation. The investigation was launched after an internal audit found irregularities in 2022 and ended in the middle of the following year. The investigation involves multiple employees in the China App Store unit, which is a highly profitable unit for Apple, especially because a large amount of its revenue comes from mobile games.
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Apple Online Store (China)
These developments coincided with a visit to China by Apple CEO Tim Cook, who praised Chinese app developers and attended a mobile gaming championship hosted by Tencent.
The employees reviewed during the investigation came from multiple departments responsible for app approval, developer revenue guidance, and selecting apps to be prominently displayed on the App Store homepage. These locations have a significant impact on the success of your application.
The Information understands that one aspect of the investigation involves unauthorized contact between these employees, the game developer, and its consultants. Those interactions included accepting free meals and nightclubs from these outsiders, according to a source familiar with the situation.
While Apple has not commented specifically on the allegations, it has stressed that it expects employees around the world to adhere to its strict ethics and business conduct policies. Apple reiterated its commitment to thoroughly investigate reports of misconduct and take appropriate action, including termination.
Apple's AppStore unit has been questioned in the past about the influence of its editorial team in selecting featured apps. The team works with business managers and high-profile developers, while reviewers can approve or deny apps based on Apple's guidelines.
This process often involves subjectivity and creates frustration for developers. In addition, Developer Relations employees play a vital role in promoting tools and technologies to app developers and serve as liaisons when developers have issues ensuring Apple approves their apps or updates.
Apple has strict rules about contact with developers. Employees responsible for app review and editing must obtain prior approval for meetings with developers. In contrast, employees responsible for developer relations and business management can meet with developers but must avoid accepting expensive gifts or meals.
Apple's internal investigation found that the fired employees were not directly responsible for app approval for China's App Store. However, the unauthorized exposure of some individuals whose positions may have affected the featured apps remains unclear.
While Apple is investigating China’s App Store, global regulatory agencies are also increasing scrutiny of its App Store operations. The U.S. Department of Justice is reportedly preparing to file a potential lawsuit against Apple, hoping to learn how the company maintains tight control over the iPhone, including the App Store.
The Digital Markets Act passed by the European Union requires gatekeepers like Apple to ensure equal access to their operating systems. This would allow developers to distribute apps in European countries through other means, potentially affecting Apple's commissions.