Apple Inc. (NASDAQ: AAPL) has ended its resistance to the Chinese government's new rules for app stores. It is now asking developers to obtain a license from the Chinese government before they submit new apps to the App Store.
What Happened: Apple had until recently held out from complying with the Xi Jinping-led Chinese government's rules for app stores, but it has finally bowed down.
China's Ministry of Industry and Information (MIIT) had ordered app developers to file their business details in August. The new rules also require foreign app developers to either set up a company in China or partner with a local publisher.
Although Apple resisted the enforcement of these rules initially in the App Store, it has now given up, reported Reuters.
According to the report, app developers have to furnish their Internet Content Provider (ICP) filing with the company when they submit new apps.
For now, app developers have to submit their ICP filings for new apps. For existing apps, they have time until March 2024.
Why It Matters: The Chinese market contributes 19% to Apple's top line, so it is critical for the company to comply with the Chinese government's regulations even if they might seem draconian.
This is also not the first time China's rules have directly impacted Apple and the App Store. Earlier in August, Apple purged hundreds of ChatGPT-like apps from the App Store to comply with Chinese regulations.
However, back in 2020, Apple removed thousands of apps from the App Store in China to comply with the Chinese government's rule changes.
Apple had set a deadline for gaming apps to comply with Chinese regulations or face removal - by the end of 2020, Apple ended up purging 46,000 apps in one day, and 39,000 of those apps were games.