The measure, sponsored by Democratic Senators Richard
Blumenthal and Amy Klobuchar along with Republican Senator Marsha Blackburn,
would bar big app stores from requiring providers to use their payment system.
Blumenthal noted the 30 percent cut that Google and Apple
take for many app and in-app purchases and subscriptions, saying it was a sign
of "monopolistic power" and raises prices for consumers.
Blackburn accused Silicon Valley executives of
"arrogance" and refusing to engage with Congress.
"I don't want to say or have people think that I'm
saying that big tech is bad, because big is not bad. But it is clear that
guardrails are now needed," added Blackburn.
Apple said in a letter sent to key lawmakers that the
measure favoured "side-loading," or loading apps on to Apple devices
without using the company's App Store, which would allow those app companies to
avoid what the letter called Apple's "pro-consumer privacy
protections."
Google has already lowered the commission it charges apps
for using its payment system even though it will reduce its revenue.
"We've made our concerns to Congress clear. This bill
could destroy many consumer benefits that current payment systems provide and
distort competition by exempting gaming platforms, which amounts to Congress
trying to artificially pick winners and losers in a highly competitive
marketplace," said Mark Isakowitz, a Google vice president for public
policy.
The stakes are high for Apple, whose App Store anchors its
$68.4 billion services business as the smartphone market has matured.
The biggest technology companies, including Meta's Facebook
and Amazon, have been under pressure in Congress because of allegations they
abused their outsized market power. © Reuters
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