Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.
The app industry is as hot as ever, with a record 204 billion downloads and $ 120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $ 544 billion valuation, 6.5x higher than those without a mobile focus.
In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.
This week, we’re tracking the continued ramifications of the in-app purchases incident ignited by Basecamp, which has emboldened more developers to voice their gripes with Apple publicly in the past few days. The app stores are also this week enmeshed in world of politics, ranging from the India-China border dispute to apps impacted by China’s big brother-esque regulations to the latest with Apple’s antitrust probe.
Dozens of Chinese apps banned in India
In a major upset to mobile app businesses competing on a global stage, India this week blocked 59 apps developed by Chinese firms, due to concerns that the apps were engaging in activities that threatened the “national security and defense of India,” according to the Indian government.
The ban itself is a political power move as it follows deadly clashes between Indian and Chinese troops along the disputed Himalayan border in June, which led to the death of at least 20 Indian soldiers on June 16. (China didn’t disclose its casualties.) Indian government officials claimed they had received reports of the apps stealing and transmitting user data in an unauthorized manner to servers outside the country. This is what necessitated the ban, they said.
India’s move could prove to have larger repercussions, as it sets the stage for a world where Chinese internet companies are excluded from key markets. This isn’t something that’s limited to apps, of course. For instance, the U.S. is rallying its allies to stop using Huawei technologies for 5G. But China’s policies could mean its more successful apps, like TikTok, will lose key markets and therefore, forfeit revenue and power.
- India’s ban threatens TikTok’s growth in a key market
The move to ban the Chinese apps in India most notably impacts TikTok. To date, India had been the app’s largest overseas market until now, with some 200M+ users across around 611M lifetime downloads. In the most recent quarter, TikTok and the 58 other banned apps combined, had been downloaded around 330M times. The ban is estimated to impact roughly one in three smartphone users in India, according to research firm Counterpoint.
Google and Apple began to comply with New Delhi’s order on Thursday, to prevent Indian users from accessing the banned apps. In addition, India’s Department of Telecommunications ordered telecom networks and ISPs to block access to those 59 apps immediately.
Kevin Mayer, the chief executive of TikTok, said on Wednesday his app was in compliance with Indian privacy and security requirements and he was looking forward to meeting with various stakeholders in the Indian government to discuss.