Apple Cook CEO Tim Cook wrote to staff to address the controversy.
Topline: Apple CEO Tim Cook has defended the tech giant’s decision to remove an app that it said was being used by Hong Kong protesters to “endanger” police after facing pressure from China’s state-owned media.
Key background: This week, China’s state-run paper People’s Daily accused Apple of aiding protesters, who they referred to as “rioters,” by approving the HKmap.Live app. Apple subsequently removed the app, claiming it was being used by Hong Kong’s pro-democracy protesters to target and endanger police and that it violated their App Store guidelines.
A Twitter account linked to the app denied the accusations. But Apple’s move is symptomatic of a wider issue: China’s communist government uses the threat of being cut off from its huge domestic market to force multinational firms to toe its line on issues like the Hong Kong protests or Taiwan. The problem is particularly acute for Apple with China sitting at the heart of its supply chain for iPhones, MacBooks and Airpods, and accounting for a third of revenues.
- In a memo sent around to Apple employees on Thursday, Cook doubled down on Apple’s initial statement, saying Apple had received “credible information” from Hong Kong’s cybersecurity officials that the app was being used “maliciously to target individual officers.”
- “This use put the app in violation of Hong Kong law. Similarly, widespread abuse clearly violates our App Store guidelines barring personal harm,” Cook said.
- Apple’s removal of the app sparked criticism from Democrats and Republicans senators. “Who is really running Apple, Tim Cook or Beijing?” Republican senator Josh Hawley tweeted. Democrat Ron Wyden accused Apple of siding with an “authoritarian regime.”
- Hong Kong has witnessed months of pro-democracy protests calling for democratic and police reform. The demonstrations, set to enter a 19th week, have been strongly criticized by Beijing.
Crucial quote: “National and international debates will outlive us all, and, while important, they do not govern the facts. In this case, we thoroughly reviewed them, and we believe this decision best protects our users,” Cook wrote.
Tangent: American businesses and brands trying to do business in China have always faced challenges, but this week those tensions boiled over. The NBA has been evaluating the cost of the backlash to Houston Rockets General Manager Daryl Morey’s tweet in support of Hong Kong’s protesters.
The political spat could also impact on businesses in China. Tencent owns the local streaming rights to the NBA but announced it would halt broadcasts of the preseason because of the dispute. Reuters reports the Chinese tech giant is now facing demands for refunds from disgruntled basketball fans.
