Apple has recently terminated the employment of several of its App Store team members in China due to alleged “business misconduct” following a year-long internal investigation. This probe uncovered various instances of impropriety, including unwarranted interactions with mobile game developers and, notably, allegations of sexual assault.
The internal investigation was initiated after an “internal audit” revealed “irregularities” in 2022 and concluded around the middle of this year. The report suggests that more than half a dozen employees from Apple’s App Store business team in China were implicated in the investigation, with at least five of them subsequently being terminated based on its findings.
These affected employees were spread across various departments, all integral to developers seeking approval for their apps to be listed in the App Store. Their roles encompassed assisting developers in optimizing revenue from their apps and determining which apps would be featured on the App Store’s high-visibility homepages – placements that significantly influence an app’s success.
The investigation also highlighted inappropriate communication between these Apple employees and game developers, along with their consultants. Allegedly, these Apple employees accepted “complimentary meals and nightclub outings” from these parties in exchange for potential exposure and editorial promotion in the App Store.
It’s important to note that the fired employees did not possess the authority to directly approve or reject apps in the App Store. However, some of them held roles that could indirectly influence the selection of featured apps, raising questions about potential biases and favoritism.
Apple maintains stringent guidelines for such interactions. For instance, App Store review and editorial employees are prohibited from meeting with developers without prior approval. Employees involved in “developer relations and business management” are permitted to meet with developers but cannot accept lavish gifts or meals.
Apart from the firings due to business misconduct, the report also reveals that Apple dismissed one App Store employee last year for allegedly sexually assaulting an employee at Mihoyo, a prominent Chinese game developer known for the popular mobile game Genshin Impact.
In response, Apple provided the following statement:
“Without commenting on the specific allegations of this report, Apple expects its employees worldwide to abide by its very strong ethics and business conduct policies. We thoroughly investigate reports of improper conduct and when appropriate will not hesitate to take immediate action up to and including termination.”
Apple’s App Store operations in China are integral to its Services division, but the company often encounters regulatory challenges in the country. Over the years, it has been compelled to remove numerous apps, including unlicensed video game applications. Most recently, Apple had to pull a significant number of unregistered foreign apps, including major social media platforms like Facebook, Instagram, WhatsApp, and Twitter.
