By Steve Pak, | April 23, 2016
Apple Store in China
Apple's iTunes Movies and iBooks Store have been banned by China's regulators as the country starts cracking down on foreign companies' online services. The move is just half a year after Apple rolled out digital downloads in China as it doubled-down on the launch of iPhone 6s and iPhone 6s Plus. China is now the second biggest smartphone market in the world after the United States, and the world's biggest growth market.
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The New York Times reports that the State Administration of Press, Publication, Radio, Film, and Television shut down the online services. It is the country's media watchdog.
An Apple spokeswoman told the NYT the company hopes to make movies and books available to its customers in China at the soonest time possible, according to Engadget. It is believed China banned Apple services because they competed with similar ones Chinese companies offered.
Apple Music and Apple Pay are still available in China. However, it is possible that the media watchdog might also rule that they contravene on the mobile payment and music streaming services offered by local companies.
In the past the Chinese government has used control and censorship of media to favor Chinese tech companies over American companies. That has resulted in lower sales for companies such as Microsoft, IBM, and Qualcomm, according to Ars Technica.
However, Apple has worked hard to boost its sales in China during the last few years. The nation's biggest wireless carrier China Mobile made iPhones available in 2014.
Apple's sales have already leveled out this year. Any moves by the Chinese government to make Apple products and platforms less appealing could affect the company's sales growth.
In related news, Apple will end its support for iTunes Allowances on May 25. The feature allowed parents to send monthly credits to their child's Apple ID to be used in the iTunes Store.
The allowance could be spent on music, videos, books, or apps. However, unused credits will stay in the child's account until it has been spent.
Apple is encouraging customers to use "Family Sharing" instead. It allows up to six people to share their media purchases such as movies, TV shows, music, and books.
Here's a fake Apple store in China:
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