The United States Senate Judiciary Committee on Thursday approved a bill that would restrict the app stores of dominant companies in the market, such as Apple and Alphabet’s Google.
The measure, led by Senators Richard Blumenthal and Amy Klobuchar (Democrats) and Marsha Blackburn (Republican), prevents large app stores from requiring customers to use their payment system.
Blumenthal said the 30% percentage that Google and Apple receive for purchases and subscriptions and in apps is a sign of “monopoly power” and drives up prices for consumers.
Blackburn accused Silicon Valley executives of “arrogance” and refusing to meet Congress.
Apple said in a letter to top lawmakers that the measure favors “side-loading,” or loading apps onto its devices without using the company’s App Store.
The move, according to the tech giant, will allow app companies to circumvent what the letter called Apple’s “pro-consumer” privacy protections.
Google has already reduced the commission it charges apps for using its payment system.
“The bill could destroy consumer benefits provided by current payment systems and distort competition by exempting gaming platforms, which is tantamount to Congress trying to artificially pick winners and losers in a highly competitive market,” said Mark Isakowitz, deputy. President of Public Policy at Google.
Apple’s app store anchors its $68.4 billion services business.
The biggest tech companies, including Meta’s Facebook and Amazon, are under pressure in Congress over allegations they abused market power.
Source: CNN Brasil
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