Apple Criticizes U.S. Antitrust Bill That Targets the App Store

[MacRumors]

United States Senators Chuck Grassley and Amy Klobuchar this week reintroduced the American Innovation and Choice Online Act (AICOA) that targets major tech companies like Apple, and Apple is not happy to see it back.

The bipartisan bill is reminiscent of the Digital Markets Act in the European Union, banning large platforms from favoring their own products or services, limiting competitors' access to key platform features, locking users into default settings, and more. It is a reworked version of the same bill that did not reach a floor vote back in 2022.

In a statement to MacRumors, Apple said AICOA will undermine privacy, security, and child safety protections, while also making it more difficult to do business in the U.S.

We strongly disagree with the Senate's consideration of European-style regulation that would hamper innovation and force changes consumers never asked for, while undermining the privacy, security and child safety protections they rely on every day. Apple is proud to be an engine of innovation, job creation, and economic growth in the U.S., where some of the world's most innovative companies have designed technology that has changed the world. Importing Europe's failed policies will not increase competition -- it will make it more difficult to do business right here at home.

AICOA aims to "restore online competition and affordability" by preventing digital platforms from "abusing their market power to stifle competition, undercut online businesses and raise prices for American consumers." It would permit the Department of Justice, Federal Trade Commission, and state attorneys general to challenge online platforms for exclusionary conduct that harms competition.

It is applicable to platforms that have at least $175 billion in average annual gross revenue and reach 34 percent of U.S. subscriber households or 34 percent of U.S. monthly active users over the age of 12. Apple would be subject to the restrictions should AICOA pass. Companies are barred from the following under the current AICOA wording:

• Unfairly favoring their own products or services.
• Misusing nonpublic business-user data to copy and compete against small businesses.
• Unfairly limiting competitors' access to key platform features.
• Blocking business users from accessing or moving their own data from one digital platform to another.
• Retaliating against users or business users who raise legal concerns.
• Unfairly enforcing terms of service in ways that harm competition.
• Conditioning companies' access to the platform, or product placement on the platform, on purchase or use of unrelated services.
• Locking users into default settings.
• Skewing ranking or presentation against similarly situated business users.

Apple says AICOA would have the same impact as the Digital Markets Act, harming innovation, weakening privacy protections, and delaying new product features. Most recently, Apple said it would not be able to bring Siri AI to the European Union when iOS 27 launches because of an inability to reach an agreement with the European Commission on the DMA's interoperability rules.

Like the DMA, AICOA would allow for third-party app marketplaces and alternative payment methods, which Apple maintains will undermine the user protections of the App Store. Apple also says the AICOA rules mandating open platform access would give the most sensitive user data to any company that wants it.

Bill sponsors say AICOA was written to "preserve safety, privacy, intellectual property, national security and constitutional protections," and that it includes language to ensure covered platforms are able to prevent fraud and protect safety, user privacy, nonpublic data, or platform security.

Along with Apple, AICOA would impact Google, Amazon, and Meta. It is endorsed by Mozilla, Proton, DuckDuckGo, Yelp, and Y Combinator, among others. Senators Josh Hawley, Dick Durbin, Sheldon Whitehouse, and Cory Booker are co-sponsors.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Criticizes U.S. Antitrust Bill That Targets the App Store

 

[germanbeer007]

omg!!!! I'm buying an iPhone over the choice of android!!! so unfair that I'm headed into the apple ecosystem!!!!

 

[Berti10]

Let the rant begin

[written by someone from the EU]

 

[germanbeer007]

so if the bill passes, how is it fair I'm locked in to Amy Klobuchar's decision instead of Apple's decision? what choice do I have if I want the Apple way of 100% end to end curated user experience?

the bill itself is hypocritical.

 

[SBlue1]

I love my iPhone and Mac but I may want to use another brands watch, headphones or whatever is better. Apple is wrong here. If I want to use a better smartwatch Apple is blocking all the features that are reserved to its own watch. Same with headphones. I was able to use headphone accommodation on my old wired Sony headphones for years but now Apple is forcing me to by EarPods and blocks this feature for no reason! Hell no Apple!

 

[aidler]

You should always copy from the best. It was only a matter of time before an idea like the DMA was adopted in the US as well. The fact that Apple doesn't like it only shows that they are on the right track

 

[AppliedMicro]

so if the bill passes, how is it fair I'm locked in to Amy Klobuchar's decision instead of Apple's decision?

Hold my beer.

what choice do I have if I want the Apple way of 100% end to end curated user experience?

You don’t download apps from alternative stores.
You limit your acquisition of apps/software to Apple’s curated App Store and its payment methods.

Simple as that.
You’re very welcome.

No one is forcing you to step out of Apple’s ecosystem and walled garden
The mere existence of a door or tenth-floor window doesn’t force you to jump through it.

 

[coolfactor]

iOS has matured enough that I believe it's time for Apple to be more open. Let the cards fall where they might in terms of user choice. The strictness of the App Store was required in the first decade because of the mess that the computer and mobile phone industries were in.

The only thing I'll push back on is forcing Apple to move in one way or another. While USB-C is a great connection, and was the right choice, forcing Apple to adopt it was not. Let technology be adopted organically because it is the best choice. While the Lightning connector paved the way, USB-C has proven that it is better.

I do appreciate pressure on Apple to re-evaluate their "commission" fees. 30% is too high now that money is flowing in by the bucketload. There is room to lighten up on that.

The other thing that I'd push back on is forcing Apple to share its profits "just because" it's a massive source of money.

 

[HazeAndHahmahneez]

YESAH!!!!!!

So hopefully no more goog default deals and no more apple/goog deals and no more world governments/goog deals no more education, health, realty etc./goog deals and so goog just withers and dies…

Ugh, that would be PARADISE…

 

[AppliedMicro]

Let technology be adopted organically because it is the best choice. While the Lightning connector paved the way, USB-C has proven that it is better.

It’s just that Apple were acting very “inorganic” in holding on to their proprietary Lightning connectors for as long as they did.

Their products would have been laughed at and avoided by many consumers 2020 and beyond, were it not for their huge market share in smartphones allowing them to get away with it.

 

[ApostolisApo]

So I guess, when Siri AI is released (given recent history in 2 years) it will only be released in like, Australia? 😛

 

[macintologist]

This is what Apple gets for sucking up to the commander in chief

 

[arlomedia]

Sounds good to me. It's better for customers if companies earn their business with superior products, not use a strength in one area to force a weaker product in another area.

 

[SanderEvers]

So I guess, when Siri AI is released (given recent history in 2 years) it will only be released in like, Australia? 😛

Most likely Apple would just spin off Siri into another company that can then offer Siri on iOS. Sure you can then also add other AIs, but Siri's data will be protected.

And to be honest. I do not like legislation that targets companies JUST because they are popular. Regulations like these should count for either a. every company or b. none.

And the DMA is even worse, because it doesn't just target companies with a popularity/money threshold. But also with a geological. Since the EU decides which companies are required to make these changes. There is no real "you make x amount of money and you have x amount of users so you must comply" but it is "you make x amount of money, you have x amount of users and we don't like you / the country you operate from so you must comply".

 

[AppliedMicro]

So I guess, when Siri AI is released (given recent history in 2 years) it will only be released in like, Australia? 😛

Nah, Australia will likely mess things up by overzealous censorship and anti-encryption/anti-privacy legislation.

Whereas the U.S. of A. suffer from so much from structural deficiencies in legislative and outright institutional failure in government that they’ll be incapable of actually passing such legislation against (the lobbying of) “Big Tech”. Even if that’d benefit consumers, smaller companies and competition.

 

[GMShadow]

Dick Durbin, Sheldon Whitehouse, and Cory Booker

Senile crook, racist, and Fartacus. Not to mention the staff abusing pig Klobuchar.

You can tell this bill is garbage solely by its sponsors.

 

[AppliedMicro]

There is no real "you make x amount of money and you have x amount of users so you must comply"

But yes, that’s literally the law is phrased in the EU.

 

[SanderEvers]

Sounds good to me. It's better for customers if companies earn their business with superior products, not use a strength in one area to force a weaker product in another area.

Except that's not going to happen. They then will just discontinue the weaker products and increase the prices of the products where they have more strength. Which means.. well.. less choice for the customer (you already see this happening within the EU) and more expensive devices / software / etc.

 

[SanderEvers]

But yes, that’s literally the law is phrased in the EU.

No it's not. The EU decides which company is designated as gatekeeper. THEY decide, based on different criteria. But still THEY decide. ZERO EU companies have been designated as gatekeeper, even though multiple actually would fit the law.

 

[CapitalIdea]

Given the brand new platform parental controls Apple just announced, I wonder how Grassley feels about these third party app stores if they don't want to compensate Apple for usage of these tools, or how we will respond if we get an app store version of Kick where any freak can do whatever with no consequences. Also, YELP wants to complain about self-serving business practices? And Josh Hawley is a co-sponsor?!

 

[surferfb]

But yes, that’s literally the law is phrased in the EU.

Unless you’re iPadOS - then it’s “you don’t meet the numbers, but applies to you anyway!”

Or unless your Spotify - then it’s “you meet all the numbers, but the law doesn’t apply to you because you’re European!”

 

[surferfb]

Just as a bad of a law as the DMA. Thankfully, it has no chance of passing.

 

[sw1tcher]

Along with Apple, AICOA would impact Google, Amazon, and Meta. It is endorsed by Mozilla, Proton, DuckDuckGo, Yelp, and Y Combinator, among others. Senators Josh Hawley, Dick Durbin, Sheldon Whitehouse, and Cory Booker are co-sponsors.

Dick Durbin, Sheldon Whitehouse, and Cory Booker

Senile crook, racist, and Fartacus. Not to mention the staff abusing pig Klobuchar.

You can tell this bill is garbage solely by its sponsors.

Why no comment on Josh Hawley or one of the senators (Chuck Grassley) who came up with it?

And what about the people endorsing it?

Endorsements:

AICOA is endorsed by Mozilla, Y Combinator, Proton, Yelp, DuckDuckGo, Fox Corporation, Replit, Travel Tech, Internet Works, and a coalition of leading antitrust scholars, advocates and organizations, including the Article III Project, the Digital Progress Institute, the American Principles Project, the Bull Moose Project, the Teamsters, Citizens for Renewing America, the Josh Hammer Show, the Internet Accountability Project, Public Citizen, Public Knowledge, P Street, the Open Markets Institute, Demand Progress, the Economic Security Project, Fight for the Future, the Future of Music Coalition, Writers Guild, Small Business Majority, Reasonable Online Commerce Coalition, American Booksellers Association and the Institute for Local Self-Reliance.

 

[CMoore515]

Grassley's my senator. I'll be voicing my opinion as soon as I get home. Frankly I don't want a bunch of Quinquagenarians, sexagenarians, septuagenarians and an octogenarian like Chuck making tech policy for the country.

 

[spazzcat]

I see Sony, XBox and Nintendo are still allowed to have walled gardens