Technology giant Apple Inc (NASDAQ:AAPL) said operation of its iCloud services in mainland China will be handed over to a Chinese company next month.
The move is to comply with China's cloud computing regulation, which requires that all Chinese companies store all of their data within China.
The iCloud gig has been given to Guizhou on the Cloud Big Data (GCBD), a company run by the state.
Apple moved to calm any fears its customers might have about their data being held by a government body, saying it had strong data privacy and security protections in place.
“No back doors will be created into any of our systems,” Apple asserted.
Meanwhile, in Europe, the fabulously rich consumer electronics cash machine has agreed to pay £137mln (US$185mln) in extra taxes following an extensive audit by the UK tax authorities.
In a statement, Apple said: “We know the important role that tax payments play in society. Apple pays all that we owe according to tax laws and local customs in the countries where we operate.”
That may be so, but last month it reached an agreement with the Irish government to start coughing up €13bn (US$15.5bn) in overdue taxes.
The European Commission ruled in 2016 that a so-called “sweetheart” tax deal between Apple and Ireland was illegal.
Apple Inc shares shed 0.37% to stand at C$173.69.