In a letter to senior lawmakers, Apple stated that the measure favored “side-loading.”
The Senate Judiciary Committee approved a plan on Thursday that would regulate app shops run by firms they believe have too much market power, such as Apple and Alphabet’s Google. The bill, which is co-sponsored by Democratic Senators Richard Blumenthal and Amy Klobuchar and Republican Senator Marsha Blackburn, would make it illegal for app shops to force developers to use their payment system.
Blumenthal cited Google and Apple’s 30% cut for many app and in-app sales and subscriptions, calling it evidence of “monopolistic dominance” that raises consumer prices.
Silicon Valley leaders, according to Blackburn, are “arrogant” and refuse to interact with Congress.
“I don’t want to give the impression that I’m saying or implying that big tech is terrible because it isn’t. However, it is obvious that guardrails are now required “Blackburn went on to say.
Apple warned in a letter to key senators that the bill favors “side-loading,” or installing programs on Apple devices without using the company’s App Store, which would allow app developers to sidestep Apple’s “pro-consumer privacy regulations,” according to the letter.
Despite the fact that it will lose revenue, Google has already reduced the commission it charges apps for using its payment system.
“We’ve expressed our concerns to Congress, and this bill has the potential to eliminate many of the consumer benefits that current payment methods provide, as well as distort competition by exempting gaming platforms,” said Mark Isakowitz, a Google vice president for public policy.
As the smartphone industry matures, the stakes are high for Apple, whose App Store roots its $68.4 billion (approximately Rs. 5,11,100 crore) services sector.
Congress has been putting pressure on the largest technological giants, notably Meta’s Facebook and Amazon, over claims that they misused their market power.