Apple Stores iCloud Data on China's Government Servers While Refusing EU's Siri AI Rollout Over 'Privacy'

Apple's privacy credentials took a fresh hit this week after the company announced it would withhold its newly unveiled Siri AI from European Union users, citing data protection concerns under the bloc's Digital Markets Act (DMA). The announcement, made during the WWDC 2026 keynote on Monday, drew immediate scrutiny, not only from EU regulators, but from observers pointing to a longstanding arrangement in China, where Apple has for years stored iCloud data on servers operated by a state-owned partner with close ties to the Chinese Communist Party.

The gap between Apple's stated position in Europe and its actual practice in China has reignited debate about whether the tech giant's privacy arguments are principled or simply expedient.

EU Commission: 'Nothing in the DMA Prohibits This'

The European Commission was quick to dispute Apple's framing. European Commission spokesman Thomas Regnier told reporters: 'The decision not to roll out Siri AI in the EU is Apple's and Apple's only because absolutely nothing in the DMA prohibits Apple from introducing new products in the EU.'

Regnier pushed back on Apple's proposed 18-month compliance timeline, framing it as an attempt to stall fair competition rather than a genuine security safeguard. He argued that, rather than building a compliant solution, Apple simply requested an exemption. 'That's not an option, because it would mean that no AI agent other than Siri AI ... would have an equal chance to be chosen by iPhone users,' he told reporters in Brussels, adding that EU law is 'non-negotiable.'

Apple, for its part, blamed the delay on what it described as an unworkable regulatory environment. 'We're deeply disappointed that our EU users won't have Siri AI on iPhone or iPad when we share our new software releases later this year,' said Craig Federighi, Apple's Senior Vice President of Software Engineering.

Apple said it had proposed a framework called 'Trusted System Agent', which would have acted as an intermediary allowing rival virtual assistants to access the same capabilities as Siri AI while keeping Apple's privacy and security protections intact. The European Commission rejected this proposal, as well as Apple's offer to roll out the feature gradually over 18 months.

The China Contrast

What has drawn particular attention is how differently Apple has handled regulatory pressure in China. According to Apple's own support documentation, iCloud in China is operated by GCBD (AIPO Cloud (Guizhou) Technology Co. Ltd), with all data stored — including photos, videos, documents, and backups — subject to GCBD's terms and conditions.

Apple agreed to move the encryption keys protecting that data to its Chinese data centres. Prior to this, all iCloud encryption keys, including those belonging to Chinese accounts, were held on US servers and therefore subject to US laws governing government access requests. Those legal protections no longer applied once the data was moved to Chinese soil.

Through this arrangement, GCBD was granted physical control over the servers and full access to stored information, with data requests directed to GCBD rather than Apple directly. It should be noted, however, that no evidence has emerged to confirm that the Chinese government gained access to users' data through the digital keys themselves.

Apple said at the time that it had 'advocated against iCloud being subject to these laws' but was 'ultimately unsuccessful', and maintained that continuing the service through GCBD was preferable to shutting it down, arguing that doing so would be detrimental to the privacy of Chinese users.

China Stored Data, Europe Blocked Feature: The Contrast

The contrast is stark. In Europe, Apple has refused to launch Siri AI on iOS and iPadOS, citing the risk that the DMA's interoperability requirements could expose user data to rival AI agents. In China, it moved encryption keys to government-linked infrastructure without a comparable public stand.

Siri AI will remain available in the EU on Mac, Apple Watch, and Apple Vision Pro when set to a supported language. The block applies specifically to iOS and iPadOS, which the DMA designates as gatekeeper platforms subject to interoperability obligations. Whether a resolution with Brussels is reached in the near term appears unlikely. The Commission has made clear that an exemption from interoperability obligations is not an option, while Apple said it will continue to engage with EU regulators on a path forward but has given no timeline for Siri AI's availability on iPhone and iPad in the region.