DOJ wishes we had a WeChat

Hey y’all. The US Department of Justice claims Apple has stifled the creation of WeChat-like super apps in the US. But first...Three things [View in browser]( [Bloomberg]( [by Austin Carr]( Hey y’all. The US Department of Justice claims Apple has stifled the creation of WeChat-like super apps in the US. But first... Three things you need to know today: - OpenAI wants to [break into Hollywood]( - CoreWeave is in talks for funding [at a $16 billion valuation]( - China loosened [cross-border data rules]( A garden of small apps For years, US tech leaders from Elon Musk to Mark Zuckerberg have dreamed of emulating the success of WeChat, Tencent Holdings Ltd.’s blockbuster mobile service. Often described as a super app, [WeChat is used by 1.3 billion Chinese consumers]( for its combination of messaging, music, shopping, gaming, hiring and bookings into a single hub. That all-in-one concept never took off in the West for a variety of reasons, and the DOJ reckons Apple Inc. is one of them. In its [antitrust lawsuit against the iPhone maker](, the DOJ argued Apple deliberately put up hurdles to prevent super apps, lest they make switching to a smartphone rival too easy. Its complaint cited an Apple manager warning that allowing such unified experiences to become the “main gateway where people play games, book a car, make payments, etc.” would “let the barbarians in at the gate.” Apple says it has helped enable super apps on the iPhone, including China’s WeChat and Tata’s Data Neu in India, and wants more of them to be successful. That super apps are less popular in the US is not due to Apple’s platform rules, according to the company. I find the DOJ’s argument surprising. The conventional wisdom is that [super apps never took off]( stateside because, by the time WeChat’s approach boomed in China, Western consumers were already accustomed to single-purpose apps. (There were also unique regulatory and [economic conditions in Asia]( that likely contributed to the WeChat phenomenon.) Cramming too many features inside one app usually proved clumsy for users, one reason [Zuckerberg unbundled Facebook]( and its Messenger chat, kept WhatsApp and Instagram detached, and launched separate offerings for (short-lived) newspaper and video services. Much of the DOJ’s claim centers on historic iOS restrictions against “mini programs,” sort of lightweight third-party software that can be added directly inside services like WeChat. The lawsuit contends Apple hindered this alt-ecosystem partly by enforcing arbitrary interface rules—developers had to use “flat, text-only” lists to display mini programs instead of icons or tiles—and not allowing payments for this feature. (Apple [enabled in-app purchases for mini programs]( in January.) The scrutiny could represent a new frontier in Apple’s fight to [protect its walled garden](. Already, European regulators have pressured it to [alter the fees it charges developers]( and to [allow alternative marketplaces](. I’m waiting to see if the DOJ can show tangible examples in court of how consumers were harmed by the absence of mini programs in the US. But right now the claims suggest a parallel universe where, with a few Apple policy tweaks, a vibrant mix of platform-esque super apps would have magically emerged and enhanced competition with iOS and Google’s Android. Certainly, some developers have WeChat-style ambitions. In 2020, for example, [Snap Inc. introduced a feature called Minis]( that incorporated “bite-sized utilities” inside its chat app, including a meditation service from Headspace and a third-party tool to book movie tickets. Snap [killed Minis]( two years later. It’s possible Apple’s rules crippled the effort, but it seems just as likely that few really cared for the integrations. Since then, as Musk pitches X as an “[everything app](,” software makers appear to be having more success with industry-specific bundles. Uber Technologies Inc.’s app has a services tab where users can quickly jump between ordering things to consume (food, groceries, alcohol) or ride in (taxis, rental cars, party buses) without the need to hop to separate programs. OpenAI’s [ChatGPT offers lots of third-party bots]( inside its app that can be accessed without extra downloads.    If mini programs ever truly catch on and a US equivalent of WeChat wraps up all my beloved services in one easily portable app, then maybe it would be faster to switch from an iPhone to an Android phone. I’d certainly enjoy installing one all-encompassing app instead of a series of individual ones. But then again, if a single app were that good and universal, my guess is the DOJ would have concerns about it too.—[Austin Carr](mailto:acarr54@bloomberg.net) The big story Legacy tech companies are seeing stock values soar [by tapping into the artificial intelligence buzz](. IBM, Oracle and Dell have all risen by double digits this year. One to watch The DOJ’S sweeping lawsuit against Apple levels antitrust allegations against the tech giant’s entire ecosystem, departing from other litigation targeting narrow aspects of its business model. George Washington Global Competition Professor of Law and Policy William Kovacic joins Caroline Hyde and Ed Ludlow on "Bloomberg Technology." Get fully charged Apple is scrapping its project to design and develop [its own smartwatch displays.]( Montenegro’s Supreme Court suspended earlier decisions to extradite [former crypto mogul Do Kwon to South Korea](. Tim Cook was in China last week and capped off the trip by talking about [how AI can help reduce carbon emissions.]( Fintech firm Chime Financial is planning a public listing [in the US in 2025.]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](