haskell has no type-level lambda?

gistfile1.hs

type Compose f g a = f (g a)
type Apply f a = f a

-- This one fails with "Compose has 3 arguments but you gave it 2".
-- All the others work.
x0 :: Apply (Compose f g) a
x0 = undefined

x1 :: (Compose f g) a
x1 = undefined

newtype Compose' f g a = Compose' f (g a)
newtype Apply' f a = Apply' (f a)

x3 :: Apply' (Compose' f g) a
x3 = undefined

x4 :: (Compose' f g) a
x4 = undefined