Google (GOOGL) and Apple (AAPL) are under harsh scrutiny after a recent report disclosed that their app stores host VPN applications associated with a Chinese cybersecurity firm, Qihoo 360. The U.S government has blacklisted the firm. The Financial Times reports that 5 VPNs still available to U.S users, such as VPN Proxy master and Turbo VPN, are linked to Qihoo. It was sanctioned in 2020 on the charges of alleged military ties.
Ilusion of Privacy: VPNs collecting data
In 2025 alone, three VPN apps have had over a million downloads on Google Play and Apple’s App Store, suggesting these aren’t small-time apps, Sensor Tower reports. They are advertised as “private browsing” tools, but the VPNs provide the companies with complete user data of their online activity. This is alarming because China’s national security laws mandate that companies give user data if the government demands it.
Concerns around ownership structures
The intricate web of ownership structures raises important questions; the apps are run by Singapore-based Innovative Connecting, owned by Lemon Seed, a Cayman Islands firm. Qihoo acquired Lemon Seed for $69.9 million in 2020. The company claimed to sell the business months late, but FT reports the China-based team making the applications were still under Qihoo’s umbrella for years. According to FT, a developer said, “You could say that we’re part of them, and you could say we’re not. It’s complicated.”
Amid outrage, Google and Apple respond
Google said it strives to follow sanctions and remove violators when found. Apple has removed two apps- Snap VPN and Thunder VPN- after FT contacted the business, claiming it follows strict rules on VPN data-sharing.
Privacy scare can damage stock valuations
What Google and Apple face is more than public outage. Investors prioritise data privacy, and regulatory threat has increased, mainly with growing concerns around U.S tech firms’ links to China. If the U.S government gets involved, it can result in stricter rules, fines, and even more app removals. If this happens, shareholders won’t be happy.
According to FT, “Innovative Connecting said the content of the article was not accurate and declined to comment further. Guangzhou Lianchuang declined to comment. Qihoo and Chen Ningyi did not respond to requests for comment.”
