Enlarge/ Oregon’s repair bill prohibits companies from implementing software locks that prohibit aftermarket or used parts from being installed in their devices.
Oregon Governor Tina Kotek today signed the state’s Right to Repair Act, which will push manufacturers to provide more repair options for their products than any other state so far.
The law, like those passed in New York, California, and Minnesota, will require many manufacturers to provide the same parts, tools, and documentation to individuals and repair shops that they provide to their own repair teams.
But Oregon’s bill goes further, preventing companies from implementing schemes that require parts to be verified through encrypted software checks before they will function. Known as parts pairing or serialization, Oregon’s bill, SB 1596, is the first in the nation to target that practice. Oregon State Senator Janeen Sollman (D) and Representative Courtney Neron (D) sponsored and pushed the bill in the state senate and legislature.
“By eliminating manufacturer restrictions, the Right to Repair will make it easier for Oregonians to keep their personal electronics running,” said Charlie Fisher, director of Oregon’s chapter of the Public Interest Research Group (PIRG), in a statement. “That will conserve precious natural resources and prevent waste. It’s a refreshing alternative to a ‘throwaway’ system that treats everything as disposable.”
Oregon’s bill isn’t stronger in every regard. For one, there is no set number of years for a manufacturer to support a device with repair support. Parts pairing is prohibited only on devices sold in 2025 and later. And there are carve-outs for certain kinds of electronics and devices, including video game consoles, medical devices, HVAC systems, motor vehicles, and—as with other states—”electric toothbrushes.”
Apple opposed the Oregon repair bill for its parts-pairing ban. John Perry, a senior manager for secure design at Apple, testified at a February hearing in Oregon that the pairing restriction would “undermine the security, safety, and privacy of Oregonians by forcing device manufacturers to allow the use of parts of unknown origin in consumer devices.”
Apple surprised many observers with its support for California’s repair bill in 2023, though it did so after pressing for repair providers to mention when they use “non-genuine or used” components, and to bar repair providers from disabling security features.
According to Consumer Reports, which lobbied and testified in support of Oregon’s bill, the repair laws passed in four states now cover nearly 70 million people.
Apple has announced dates for this year’s Worldwide Developers Conference (WWDC). WWDC24 will run from June 10 through June 14 at the company’s Cupertino, California, headquarters, but everything will be streamed online.
Apple posted about the event with the following generic copy:
Join us online for the biggest developer event of the year. Be there for the unveiling of the latest Apple platforms, technologies, and tools. Learn how to create and elevate your apps and games. Engage with Apple designers and engineers and connect with the worldwide developer community. All online and at no cost.
As always, the conference will kick off with a keynote presentation on the first day, which is Monday, June 10. You can be sure Apple will use that event to at least announce the key features of its next round of annual software updates for iOS, iPadOS, macOS, watchOS, visionOS, and tvOS.
We could also see new hardware—it doesn’t happen every year, but it has of late. We don’t yet know exactly what that hardware might be, though.
Much of the speculation among analysts and commentators concerns Apple’s first move into generative AI. There have been reports that Apple may work with a partner like Google to include a chatbot in its operating system, that it has been considering designing its own AI tools, or that it could offer an AI App Store, giving users a choice between many chatbots.
Whatever the case, Apple is playing catch-up with some of its competitors in generative AI and large language models even though it has been using other applications of AI across its products for a couple of years now. The company’s leadership will probably talk about it during the keynote.
After the keynote, Apple usually hosts a “Platforms State of the Union” talk that delves deeper into its upcoming software updates, followed by hours of developer-focused sessions detailing how to take advantage of newly planned features in third-party apps.
Apple has just released version 14.4.1 for macOS Sonoma, a small-but-significant patch that claims to fix several issues with third-party software and accessories that cropped up in the 14.4 update. The 14.4.1 release also includes a pair of security fixes.
Apple’s release notes highlight fixes for three major problems:
USB hubs connected to external displays may not be recognized
Copy protected Audio Unit plug-ins designed for professional music apps may not open or pass validation
Apps that include Java may quit unexpectedly
Users and companies began noticing problems shortly after the macOS 14.4 update was released earlier this month. Reports of broken USB hubs cropped up on Reddit, the Apple Support Communities forums, and elsewhere within the first couple of days, and issues with Java and iLok audio software DRM devices were reported later on. Some users also reported broken printer drivers and deleted file revisions in iCloud Drive, though Apple’s release notes don’t mention those problems.
At least some of these bugs reportedly weren’t present in preview builds of the 14.4 update, which could explain why they weren’t discovered during the public beta period.
Both of the security patches are for so-called “clickless” exploits that can allow remote code execution after a system displays a compromised image. Apple has also released macOS Ventura 13.6.6 to patch the security vulnerabilities for Macs that haven’t upgraded to Sonoma (or can’t upgrade to Sonoma).
Apple released other minor updates to iOS, iPadOS, and visionOS last week to patch the same security vulnerabilities. None of those updates listed any specific non-security bug fixes in their release notes beyond the broad “important bug fixes and security updates” boilerplate that accompanies most minor OS updates from Apple.
Enlarge/ EU Commissioner for Internal Market Thierry Breton talks to media about non-compliance investigations against Google, Apple, and Meta under the Digital Markets Act (DMA).
Not even three weeks after the European Union’s Digital Markets Act (DMA) took effect, the European Commission (EC) announced Monday that it is already probing three out of six gatekeepers—Apple, Google, and Meta—for suspected non-compliance.
Apple will need to prove that changes to its app store and existing user options to swap out default settings easily are sufficient to comply with the DMA.
Similarly, Google’s app store rules will be probed, as well as any potentially shady practices unfairly preferencing its own services—like Google Shopping and Hotels—in search results.
Finally, Meta’s “Subscription for No Ads” option—allowing Facebook and Instagram users to opt out of personalized ad targeting for a monthly fee—may not fly under the DMA. Even if Meta follows through on its recent offer to slash these fees by nearly 50 percent, the model could be deemed non-compliant.
“The DMA is very clear: gatekeepers must obtain users’ consent to use their personal data across different services,” the EC’s commissioner for internal market, Thierry Breton, said Monday. “And this consent must be free!”
In total, the EC announced five investigations: two against Apple, two against Google, and one against Meta.
“We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA,” antitrust chief Margrethe Vestager said, ordering companies to “retain certain documents” viewed as critical to assessing evidence in the probe.
The EC’s investigations are expected to conclude within one year. If tech companies are found non-compliant, they risk fines of up to 10 percent of total worldwide turnover. Any repeat violations could spike fines to 20 percent.
“Moreover, in case of systematic infringements, the Commission may also adopt additional remedies, such as obliging a gatekeeper to sell a business or parts of it or banning the gatekeeper from acquisitions of additional services related to the systemic non-compliance,” the EC’s announcement said.
“These are the cases where we already have concrete evidence of possible non-compliance,” Breton said. “And this in less than 20 days of DMA implementation. But our monitoring and investigative work of course doesn’t stop here,” Breton said. “We may have to open other non-compliance cases soon.
Google and Apple have both issued statements defending their current plans for DMA compliance.
“To comply with the Digital Markets Act, we have made significant changes to the way our services operate in Europe,” Google’s competition director Oliver Bethell told Ars, promising to “continue to defend our approach in the coming months.”
“We’re confident our plan complies with the DMA, and we’ll continue to constructively engage with the European Commission as they conduct their investigations,” Apple’s spokesperson told Ars. “Teams across Apple have created a wide range of new developer capabilities, features, and tools to comply with the regulation. At the same time, we’ve introduced protections to help reduce new risks to the privacy, quality, and security of our EU users’ experience. Throughout, we’ve demonstrated flexibility and responsiveness to the European Commission and developers, listening and incorporating their feedback.”
A Meta spokesperson told Ars that Meta “designed Subscription for No Ads to address several overlapping regulatory obligations, including the DMA,” promising to comply with the DMA while arguing that “subscriptions as an alternative to advertising are a well-established business model across many industries.”
The EC’s announcement came after all designated gatekeepers were required to submit DMA compliance reports and scheduled public workshops to discuss DMA compliance. Those workshops conclude tomorrow with Microsoft and appear to be partly driving the EC’s decision to probe Apple, Google, and Meta.
“Stakeholders provided feedback on the compliance solutions offered,” Vestager said. “Their feedback tells us that certain compliance measures fail to achieve their objectives and fall short of expectations.”
Apple and Google app stores probed
Under the DMA, “gatekeepers can no longer prevent their business users from informing their users within the app about cheaper options outside the gatekeeper’s ecosystem,” Vestager said. “That is called anti-steering and is now forbidden by law.”
Stakeholders told the EC that Apple’s and Google’s fee structures appear to “go against” the DMA’s “free of charge” requirement, Vestager said, because companies “still charge various recurring fees and still limit steering.”
This feedback pushed the EC to launch its first two probes under the DMA against Apple and Google.
“We will investigate to what extent these fees and limitations defeat the purpose of the anti-steering provision and by that, limit consumer choice,” Vestager said.
These probes aren’t the end of Apple’s potential app store woes in the EU, either. Breton said that the EC has “many questions on Apple’s new business model” for the app store. These include “questions on the process that Apple used for granting and terminating membership of” its developer program, following a scandal where Epic Games’ account was briefly terminated.
“We also have questions on the fee structure and several other aspects of the business model,” Breton said, vowing to “check if they allow for real opportunities for app developers in line with the letter and the spirit of the DMA.”
The US Department of Justice is angry about green message bubbles. Announcing today’s antitrust lawsuit against Apple, US Attorney General Merrick Garland devoted a portion of his speech to the green bubbles that appear in conversations between users of iPhones and other mobile devices such as Android smartphones.
“As any iPhone user who has ever seen a green text message, or received a tiny, grainy video can attest, Apple’s anticompetitive conduct also includes making it more difficult for iPhone users to message with users of non-Apple products,” Garland said while announcing the suit that alleges Apple illegally monopolized the smartphone market.
The attorney general accused Apple of “diminishing the functionality of its own messaging app” and that of messaging apps made by third parties. “By doing so, Apple knowingly and deliberately degrades quality, privacy, and security for its users,” Garland said. “For example, if an iPhone user messages a non-iPhone user in Apple Messages, the text appears not only as a green bubble, but incorporates limited functionality.”
When messages are presented in those telltale green bubbles, “the conversation is not encrypted, videos are pixelated and grainy, and users cannot edit messages or see typing indicators,” Garland said. “As a result, iPhone users perceive rival smartphones as being lower quality because the experience of messaging friends and family who do not own iPhones is worse—even though Apple is the one responsible for breaking cross-platform messaging.”
Garland mentioned a 2022 interview in which Apple CEO Tim Cook “was asked whether Apple would fix iPhone-to-Android messaging.” The person asking the question said, “not to make it personal, but I can’t send my mom certain videos.” Cook responded, “Buy your mom an iPhone.”
Apple touts planned RCS support
The DOJ lawsuit in US District Court for the District of New Jersey also mentions the Cook remark. The case is about more than just green bubbles and text messaging, of course. The DOJ alleges that Apple violated antitrust laws by restricting rivals’ access to iPhone features and monopolizing the smartphone market. Messaging is one of several technologies that the DOJ points to in the antitrust complaint.
Garland’s green-bubble remarks echoed complaints made by Android maker Google over the last few years. Apple today disputed the DOJ’s entire lawsuit and said the department doesn’t appear to understand how encryption in messaging works.
In a background briefing with reporters, Apple spokespeople touted the company’s recent announcement that it will support the RCS messaging standard for iMessage sometime during 2024. In order to attend Apple’s briefing and view a background document, we had to agree to paraphrase the company’s remarks instead of quoting them directly.
Apple clarified that it is not implementing RCS as it exists today because it doesn’t believe the standard offers enough privacy and security. Apple said it is working with a standards body—this is likely a reference to the GSMA—to ensure that the version of RCS it eventually implements will support encryption and strong privacy and security.
Apple said that once it adopts RCS, iPhone and non-iPhone users will be able to exchange messages with higher-resolution photos and videos, and will experience improved group texting. Apple said it hasn’t brought its own message app to non-Apple devices because the user experience wouldn’t meet the company’s standards and that it cannot ensure that a third-party device’s encryption and authentication are secure enough.
A couple of weeks ago, Apple released macOS Sonoma 14.4 with the usual list of bug fixes, security patches, and a couple of minor new features. Since then, users and companies have been complaining of a long list of incompatibilities, mostly concerning broken external accessories like USB hubs and printers but also extending to software like Java.
MacRumors has a good rundown of the list of issues, which has been steadily getting longer as people have run into more problems. It started with reports of malfunctioning USB hubs, sourced from users on Reddit, the Apple Support Communities forums, and elsewhere—USB hubs built into various displays stopped functioning for Mac users after the 14.4 update.
Other issues surfaced in the days after people started reporting problems with their USB hubs, including some instances of broken printer drivers, unexpected app crashes for some Java users, and problems launching apps that rely on the PACE anti-piracy software (and iLok hardware dongles) to authenticate.
At least some of the problems seem localized to Apple Silicon Macs. In fact, iLok recommends running digital audio software in Rosetta mode as a temporary stopgap while Apple works on a fix. According to iLok, Apple has acknowledged this particular bug and is working on an update, but “[has] not indicated a timeline.”
The USB hub issue may be related to the USB security prompts that Apple introduced in macOS 13 Ventura, asking users to confirm whether they wanted to connect to USB-C accessories that they were connecting to their Mac for the first time. Some users have been able to get their USB hubs working again after the 14.4 update by making macOS request permission to connect to the accessory every time the accessory is plugged in; the default behavior is supposed to recognize USB devices that you’ve already connected to once.
Scanning Apple’s release notes or security update disclosures for the update doesn’t reveal any smoking guns, but many of the security bugs were addressed with “improved checks” and “improved access permissions,” and it’s certainly possible that some legitimate accessories and software were broken by one or more of these changes. The Oracle blog post about the Java problems refers to memory access issues that seem to be causing the crashes, though that may or may not explain the problems people are having with external accessories. The blog post also indicates that these bugs weren’t present in the public developer betas of macOS 14.4.
My desktop M2 Mac Studio setup, which is connected to a 4K Gigabyte M28U with a built-in USB hub, hasn’t exhibited any unusual behavior since the update, so it’s also possible that these issues aren’t affecting every user of every Mac. If you haven’t updated yet, it may be worth waiting until Apple releases fixes for some or all of these issues, even if you don’t think you’ll be affected.
On Monday, Bloomberg reported that Apple is in talks to license Google’s Gemini model to power AI features like Siri in a future iPhone software update coming later in 2024, according to people familiar with the situation. Apple has also reportedly conducted similar talks with ChatGPT maker OpenAI.
The potential integration of Google Gemini into iOS 18 could bring a range of new cloud-based (off-device) AI-powered features to Apple’s smartphone, including image creation or essay writing based on simple prompts. However, the terms and branding of the agreement have not yet been finalized, and the implementation details remain unclear. The companies are unlikely to announce any deal until Apple’s annual Worldwide Developers Conference in June.
Gemini could also bring new capabilities to Apple’s widely criticized voice assistant, Siri, which trails newer AI assistants powered by large language models (LLMs) in understanding and responding to complex questions. Rumors of Apple’s own internal frustration with Siri—and potential remedies—have been kicking around for some time. In January, 9to5Mac revealed that Apple had been conducting tests with a beta version of iOS 17.4 that used OpenAI’s ChatGPT API to power Siri.
As we have previously reported, Apple has also been developing its own AI models, including a large language model codenamed Ajax and a basic chatbot called Apple GPT. However, the company’s LLM technology is said to lag behind that of its competitors, making a partnership with Google or another AI provider a more attractive option.
Google launched Gemini, a language-based AI assistant similar to ChatGPT, in December and has updated it several times since. Many industry experts consider the larger Gemini models to be roughly as capable as OpenAI’s GPT-4 Turbo, which powers the subscription versions of ChatGPT. Until just recently, with the emergence of Gemini Ultra and Claude 3, OpenAI’s top model held a fairly wide lead in perceived LLM capability.
The potential partnership between Apple and Google could significantly impact the AI industry, as Apple’s platform represents more than 2 billion active devices worldwide. If the agreement gets finalized, it would build upon the existing search partnership between the two companies, which has seen Google pay Apple billions of dollars annually to make its search engine the default option on iPhones and other Apple devices.
However, Bloomberg reports that the potential partnership between Apple and Google is likely to draw scrutiny from regulators, as the companies’ current search deal is already the subject of a lawsuit by the US Department of Justice. The European Union is also pressuring Apple to make it easier for consumers to change their default search engine away from Google.
With so much potential money on the line, selecting Google for Apple’s cloud AI job could potentially be a major loss for OpenAI in terms of bringing its technology widely into the mainstream—with a market representing billions of users. Even so, any deal with Google or OpenAI may be a temporary fix until Apple can get its own LLM-based AI technology up to speed.
Epic Games yesterday urged a federal court to sanction Apple for alleged violations of an injunction that imposed restrictions on the iOS App Store. Epic cited a 27 percent commission charged by Apple on purchases completed outside the usual in-app payment system and other limits imposed on developers.
“Apple is in blatant violation of this Court’s injunction,” Epic wrote in a filing in US District Court for the Northern District of California. “Its new App Store policies continue to impose prohibitions on developers that this Court found unlawful and enjoined. Moreover, Apple’s new policies introduce new restrictions and burdens that frustrate and effectively nullify the relief the Court ordered.”
The permanent injunction issued by the court in September 2021 said that Apple may not prohibit app developers from including external links to alternate sales channels “or other calls to action that direct customers to purchasing mechanisms” that aren’t Apple’s in-app purchasing system. The injunction also said that Apple may not prohibit developers from “communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.”
Epic pointed out that the iPhone maker requires developers to “pay Apple a new fee of 27% on any purchases users make outside the app up to one week after clicking a Link.” The fee alone “is enough to frustrate the very purpose of the Injunction; if Apple is allowed to tax out-of-app purchases, those purchases could never constrain Apple’s pricing of IAP [in-app purchases], and developers and consumers would not have any reason to use these alternative transacting options,” Epic said.
The case began in August 2020 when Fortnite maker Epic filed a lawsuit claiming that Apple monopolizes the iOS app distribution and in-app payment markets and was guilty of anti-competitive conduct. A federal judge determined after trial that Apple violated California’s competition laws and “that Apple’s anti-steering provisions hide critical information from consumers and illegally stifle consumer choice.”
An appeals court upheld the injunction in April 2023, and the Supreme Court decided not to take up the case. The injunction applies nationwide.
Apple: We’re complying
Apple said in a January 2024 filing that it is complying with the 2021 injunction. Apple said it now “expressly permits developers with apps on the iOS or iPadOS App Store US storefronts to include buttons or external links with calls to action within their apps that direct users to alternative, out-of-app purchasing mechanisms.” Apple also said it “does not limit developers’ ability to send out-of-app communications to users regarding alternative purchasing methods.”
Regarding the 27 percent commission, Apple said the charge “complies with the Injunction’s plain terms” and is “consistent with the Court’s rationale for upholding Apple’s other App Store policies.” Apple’s website says the commission applies to proceeds for sales “on your website after a link out.”
Epic argues that “Apple’s new scheme so pervasively taxes, regulates, restricts and burdens in-app links directing users to alternative purchasing mechanisms on a developer’s website (‘External Links’ or ‘Links’) as to make them entirely useless. Moreover, Apple continues to completely prohibit the use of ‘buttons… or other calls to action’ in direct contravention of this Court’s Injunction.”
Epic argues that the “plain button style” required by Apple “is not a button at all.” Epic provided this illustration, saying the only allowed button types are the ones in the green box:
The original version of that illustration comes from Apple’s website. On another page, Apple says that external purchase links must use the plain button style.
“With these new policies, Apple continues to charge unjustified fees and intentionally prevent the ‘open flow of information,'” Epic said. “Apple’s goal is clear: to prevent purchasing alternatives from constraining the supracompetitive fees it collects on purchases of digital goods and services. Apple’s so-called compliance is a sham.”
Enlarge/ Apple AirPods on display at the company’s Fifth Avenue store in New York in Feb. 2024.
Bing Guan/Bloomberg via Getty Images
Apple’s AirPods Pro are getting closer to becoming fully fledged hearing aids and marketed as such, according to Bloomberg’s Mark Gurman. The move could have a large impact on the hearing aid market, which has already been recently shaken up by over-the-counter models.
Gurman writes that AirPods Pro are due to receive a hearing-aid function in iOS 18, arriving this fall and likely to be announced and outlined at a Worldwide Developers Conference in June. The Wall Street Journal reported in the fall of 2021 that Apple was working toward a future AirPods Pro model that functioned as a hearing aid and would also be able to monitor body posture and even body temperature.
It was not clear from Gurman or the Journal’s reporting whether the hearing aid function would be available only in a new model of AirPods Pro or offered as a software update on prior models. Since the Journal’s report, Apple has released both a second-generation model of AirPods Pro and a refresh of that model with a USB-C port.
“Hearing aid” may also not be technically accurate, depending on Apple’s aims. The US Food and Drug Administration in 2022 provided for a new category of “Personal sound amplification products,” or PSAPs, that do not need to meet the stricter requirements for an FDA-approved hearing aid. This new category offered huge cost savings to people with mild to moderate hearing loss and kicked off a generation of hearing aids that connected to a smartphone over Bluetooth for setup, tuning, and monitoring. These are distinct from over-the-counter hearing aids, which, while still notably cheaper than “professional fit” hearing aids, are still regulated by the FDA.
A study in late 2022 found that first-generation AirPods Pro, with their “Live Listen” feature activated, could meet four of the five PSAP standards and just barely missed a sound-pressure threshold. Notably, the AirPods Pro, tested in relatively quiet environments, helped people hear about as well as hearing aid models that cost up to $10,000, within the PSAP standards.
The next version of Apple’s mobile operating system, iOS 18, is rumored to contain a multitude of features beyond AirPods updates. MacRumors (leaning on Gurman’s subscriber-only newsletter reporting) suggests that generative AI features, RCS support for text messages, and revamps to many core Apple apps are due.
When Apple upgraded its Macs with the M2 chip, some users noticed that storage speeds were actually quite a bit lower than they were in the M1 versions. Both the 256GB M2 MacBook Air and the 512GB M2 MacBook Pro had their storage speeds roughly halved compared to M1 Macs with the same storage capacities.
Teardowns revealed that this was because Apple was using fewer physical flash memory chips to provide the same amount of storage. Modern SSDs achieve their high speeds partly by reading from and writing to multiple NAND flash chips simultaneously, a process called “interleaving.” When there’s only one flash chip to access, speeds go down.
Early teardowns of the M3 MacBook Air suggest that Apple may have reversed course here, at least for some Airs. The Max Tech YouTube channel took a 256GB M3 Air apart, showing a pair of 128GB NAND flash chips rather than the single 256GB chip that the M2 Air used. BlackMagic Disk Speed Test performance increases accordingly; read and write speeds for the 256GB M2 Air come in at around 1,600 MB/s, while the M3 Air has read speeds of roughly 2,900 MB/s and write speeds of about 2,100 MB/s. That’s roughly in line with the M1 Air’s performance.
For the other M3 MacBook Airs, storage speed should be mostly comparable to the M2 versions. Apple sent us the 512GB configuration of the 13- and 15-inch M3 Airs, and storage speeds in the BlackMagic Disk Speed Test were roughly the same as for the 512GB M2 Airs—roughly 3,000 MB/s for both reading and writing.
Though this appears to be good news for M3 Air buyers, it doesn’t guarantee that any given 256GB MacBook Air will come configured this way. Apple uses multiple suppliers for many of the components in its devices, and the company could ship a mix of 128GB and 256GB chips in different 256GB MacBook Airs based on which components are cheaper or more readily available at any given time. (The Max Tech channel speculates that a single 128GB NAND chip costs Apple more than a single 256GB NAND chip, though Max Tech doesn’t cite a source for this, and we just don’t know what prices Apple negotiates with its suppliers for these components.)
Though it’s nice that the M3 Air’s baseline storage speeds are increasing, it’s too bad that a new Air is still offering the same storage speed as the M1 Airs released over three years ago. It’s frustrating that Apple can’t improve storage speeds along with CPU and GPU performance, especially when the standard M.2 SSDs in PCs are getting faster and cost less money than what Apple sells in its Mac lineup.
Enlarge/ Domestically made smartphones were much in evidence at the National People’s Congress in Beijing
Wang Zhao/AFP/Getty Images
Apple and Tesla cracked China, but now the two largest US consumer companies in the country are experiencing cracks in their own strategies as domestic rivals gain ground and patriotic buying often trumps their allure.
Falling market share and sales figures reported this month indicate the two groups face rising competition and the whiplash of US-China geopolitical tensions. Both have turned to discounting to try to maintain their appeal.
A shift away from Apple, in particular, has been sharp, spurred on by a top-down campaign to reduce iPhone usage among state employees and the triumphant return of Chinese national champion Huawei, which last year overcame US sanctions to roll out a homegrown smartphone capable of near 5G speeds.
Apple’s troubles were on full display at China’s annual Communist Party bash in Beijing this month, where a dozen participants told the Financial Times they were using phones from Chinese brands.
“For people coming here, they encourage us to use domestic phones, because phones like Apple are not safe,” said Zhan Wenlong, a nuclear physicist and party delegate. “[Apple phones] are made in China, but we don’t know if the chips have back doors.”
Wang Chunru, a member of China’s top political advisory body, the Chinese People’s Political Consultative Conference, said he was using a Huawei device. “We all know Apple has eavesdropping capabilities,” he said.
Delegate Li Yanfeng from Guangxi said her phone was manufactured by Huawei. “I trust domestic brands, using them was a uniform request.”
Financial Times using Bloomberg data
Outside of the US, China is both Apple and Tesla’s single-largest market, respectively contributing 19 percent and 22 percent of total revenues during their most recent fiscal years. Their mounting challenges in the country have caught Wall Street’s attention, contributing to Apple’s 9 percent share price slide this year and Tesla’s 28 percent fall, making them the poorest performers among the so-called Magnificent Seven tech stocks.
Apple and Tesla are the latest foreign companies to feel the pain of China’s shift toward local brands. Sales of Nike and Adidas clothing have yet to return to their 2021 peak. A recent McKinsey report showed a growing preference among Chinese consumers for local brands.
Enlarge/ Artist’s conception of Epic Games celebrating their impending return to iOS in Europe.
Epic Games
Apple has agreed to reinstate Epic Game’s Swedish iOS developer account just days after Epic publicized Apple’s decision to rescind that account. The move once again paves the way for Epic’s plans to release a sideloadable version of the Epic Games Store and Fortnite on iOS devices in Europe.
“Following conversations with Epic, they have committed to follow the rules, including our DMA policies,” Apple said in a statement provided to Ars Technica. “As a result, Epic Sweden AB has been permitted to re-sign the developer agreement and accepted into the Apple Developer Program.”
Apple’s new statement is in stark contrast to its position earlier this week when it cited “Epic’s egregious breach of its contractual obligations to Apple” as a reason why it couldn’t trust Epic’s commitments to stand by any new developer agreement. In correspondence with Epic shared by the Fortnite maker Wednesday, Apple executive Phil Schiller put an even finer point on it:
Your colorful criticism of our [Digital Markets Act] compliance plan, coupled with Epic’s past practice of intentionally violating contractual provisions with which it disagrees, strongly suggest that Epic Sweden does not intend to follow the rules… Developers who are unable or unwilling to keep their promises can’t continue to participate in the Developer Program.
A new regulatory world
Apple’s quick turnaround comes just a day after the European Commission said it was opening an investigation into Apple’s conduct under the new Digital Markets Act and other potentially applicable European regulations. That investigation could have entailed hefty fines of up to “10 percent of the company’s total worldwide turnover” if Apple was found to be in violation.
“We have the DMA coming into compliance [Thursday], so the demand of compliance is… listen, you need to be able to carry another app store, for instance, and you cannot put in place a fee structure that sort of disables the benefits of the DMA for all the market participants,” European Commission Executive Vice President Margrethe Vestager told Bloomberg TV Tuesday.
In an update on its official blog, Epic linked Apple’s decision to “public backlash for retaliation” and said the whole affair “sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable. We are moving forward as planned to launch the Epic Games Store and bring Fortnite back to iOS in Europe. Onward!”
In a social media post celebrating Apple’s move, Epic CEO Tim Sweeney said that “the DMA just had its first major victory” and called the move “a big win for European rule of law, for the European Commission, and for the freedom of developers worldwide to speak up.”
Apple’s apparent retreat on the issue preempts what would have likely been a lengthy legal and public relations battle between the two corporate giants, much like the one resulting from Epic’s 2020 decision to violate Apple’s developer agreement by adding third-party payment options to Fortnite on iOS. But that battle, which played out primarily in a series of US courts, differed in many particulars from the new conflict that was developing under the new enforcement regime surrounding Europe’s DMA rules.
Epic said last month that it plans to launch the Epic Games Store on iOS sometime in 2024.
