An Apple Inc shareholder proposal critical of the company's app removals in China received a relatively high level of support at the iPhone maker's annual meeting on Wednesday, enough to push the company to respond, experts said.
The proposal highlighted Apple's 2017 removal of virtual private network apps from its App Store in China. Such apps allow users to bypass China’s so-called Great Firewall aimed at restricting access to overseas sites, and Apple's action was seen as a step to preserve access to the country's vast market.
"A total this high is a striking warning — and it must have come from big institutional investors, not just retail shareholders — that Apple’s human rights policy in China has become a material risk for the company’s reputation," said Stephen Davis, a senior fellow at Harvard Law School's Program on Corporate Governance.An Apple spokesman declined to comment on the results.
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