The United States Department of Justice (DOJ) has taken an assertive stance against tech behemoth Apple, filing a civil antitrust lawsuit alleging the company’s obstruction of the development of WeChat-like super apps within the US market.
This legal action, joined by 16 state and district attorneys general, is grounded on the allegation that Apple has violated Section 2 of the Sherman Act by monopolizing or attempting to monopolize smartphone markets.
Super apps, epitomized by Tencent Holdings Ltd.’s WeChat, have long been coveted by US tech leaders for their multifaceted functionalities. With a user base of 1.3 billion predominantly in China, WeChat seamlessly integrates messaging, music, shopping, gaming, hiring, and bookings into a single platform. The DOJ contends that Apple has deliberately imposed barriers to impede the proliferation of super apps, fearing that they would facilitate easier transitions to smartphone rivals.
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“Apple’s broad-based, exclusionary conduct makes it harder for Americans to switch smartphones, undermines innovation for apps, products, and services, and imposes extraordinary costs on developers, businesses, and consumers,” the DOJ said.
The complaint cites an Apple manager’s caution that permitting unified experiences akin to super apps would “let the barbarians in at the gate.”
In response, Apple rebuts the DOJ’s claims, stating its facilitation of super apps on the iPhone, pointing to examples such as China’s WeChat and Tata’s Tata Neu in India. The company argues that the relative lack of popularity of super apps in the US cannot be solely attributed to its platform rules.
The DOJ’s argument diverges from conventional wisdom, which attributes the limited success of super apps in the US to consumer preferences for single-purpose apps and unique regulatory and economic conditions in Asia. Critics argue that cramming multiple features into one app often yields a cumbersome user experience, prompting tech giants like Facebook to unbundle their offerings.
At the crux of the DOJ’s claim lies historic iOS restrictions against “mini programs,” lightweight third-party software integrated directly into services like WeChat. The lawsuit alleges that Apple obstructed this alternative ecosystem by enforcing arbitrary interface rules and restricting payments for mini-programs.
Although Apple enabled in-app purchases for mini-programs in January, critics maintain that the company’s policies hindered innovation and competition.
The DOJ’s scrutiny marks a new battleground in Apple’s ongoing defense of its walled garden. European regulators have previously pressured the company to revise its developer fees and permit alternative marketplaces. While the veracity of the DOJ’s claims awaits adjudication in court, skeptics question whether tangible evidence exists to demonstrate harm to consumers resulting from the absence of mini-programs in the US.
Despite these challenges, some developers persist in their pursuit of WeChat-style ambitions. Snap Inc., for instance, introduced Minis in 2020, offering bite-sized utilities within its chat app, albeit discontinuing the feature later on, according to Bloomberg. Nevertheless, industry-specific bundles, such as Uber’s services tab, OpenAI’s ChatGPT, and Elon Musk’s aim at “everything app” with X, suggest that developers are finding success with alternative approaches to app integration.
The outcome of the lawsuit is likely going to determine whether Apple will keep its walled garden, protected by its policies, or have it dismantled to liberalize app development in the US.