A new report has revealed that Apple has suspended software updates on thousands of mobile games on its App Store in China due to the increasing government pressure to adhere to local laws. China is Apple's largest App Store market with sales of $16.4 billion yearly. 

Apple on Wednesday reportedly told developers it would have to stop providing game updates due to the absence of a license, according to a report by the Financial Times. Game developers were already informed they would have to show proof that their apps are licensed before the June 30 deadline. Chinese authorities have asked to provide the required permits in order for their games to work on the Chinese App Store. 

Chinese games are still up on the App Store and users may be able to download it while developers wait for their license to be issued. Apple has over 60,000 gaming apps in China but only 43,000 have been given licenses since 2010. In 2019, around 1570 licenses were issued to app developers. 

The Chinese government set license regulations in 2016. It requires app developers to apply for a license in order to have the freedom to change their content or charge in-app purchases. While Apple waited for the country's regulators to issue licenses, it allowed developers to upload their content on the App Store. According to CNBC, some game developers took advantage of this loophole, including Rockstar Games. 

On the other hand, several app developers have already stopped uploading content on the Chinese App Store due to this regulation. Electronic Arts, for one, has already informed fans it might takedown "Star Wars: Galaxy of Heroes." Players were also advised in-app purchases would be temporarily suspended. 

AppInChina Marketing Manager Todd Kuhns was quoted by Financial Times saying, "No one is entirely clear how Apple managed to avoid enforcing the 2016 licensing rule for so long. But considering the US-China trade war began heating up earlier this year, the timing is suspicious." This move by Apple could cost the company more than $850 million, the report said. 

Apple for years has known that China is its most lucrative market. Experts have predicted that the company could generate 53% of total mobile game revenue in the country, which is approximately $13 billion.

Indeed, the tech giant's biggest moneymaker more than any other country for the App Store is China, with most of the revenue coming from gaming apps.