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A new bill was introduced in the Senate on Wednesday targeting the power of dominant tech companies like Apple and Google in the app store market.
The bipartite law “Open App Markets Act”, introduced by the senses. Richard Blumenthal (D-CT), Marsha Blackburn (R-TN) and Amy Klobuchar (D-MN) would ban app stores from forcing developers to use the store’s payment systems. . It would also prevent companies from punishing developers who offer lower prices on a separate app store or through their own payment systems, like Apple’s public dispute with Epic Games. Notably, the bill would also ban companies like Apple from using non-public data from their stores to create competing products against companies using their service.
“For years, Apple and Google have crushed their competition and kept consumers in the dark, pocketing significant bargains while acting as the supposedly benevolent stewards of this multi-billion dollar market,” said Blumenthal in a statement Wednesday. “This bipartisan bill will help break the rock-solid hold of these tech giants, open up the app economy to new competitors, and give mobile users more control over their own devices.”
Earlier this year, the Senate Judiciary Committee brought in representatives from companies like Spotify, Tile and Match Group, a dating app company, to explain how the policies and fees of the Apple App Store and Google are hurting their businesses.
Specifically, Tile’s general counsel Kirsten Daru said that once Apple decided to create its own competing item tracking device, the company made it more difficult for Tile products to work on devices. . Match’s chief legal officer Jared Sine also said that the App Store fees are the company’s biggest expense.
“We have worked to create a fairer and more competitive app marketplace for developers and consumers,” the Coalition for App Fairness, which counts Epic Games as a member, said in a statement Wednesday. “The bipartisan Open App Markets Act is a step towards holding large technology companies accountable for practices that stifle competition for developers in the United States and around the world.
Still, tech-backed think tanks like Chamber for Progress say the bill could pose a risk to consumer safety. “This bill is a finger in the eye of anyone who has bought an iPhone or Android because phones and their app stores are safe, reliable and easy to use,” the CEO of the House of Commons said on Wednesday. progress, Adam Kovacevich. “I don’t see any consumers marching in Washington demanding that Congress make their smartphones dumber.”
Last year, Fortnite Creator Epic Games has challenged the App Store model with lawsuits against Apple and Google, seeking a court-ordered injunction that would have similar effects as the bill. A federal judge is currently reviewing the Apple case to determine whether the company violated antitrust law by implementing those policies. Nearly 40 state attorneys general have also sued Google over its app store model.
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