A new bipartisan bill in the Senate tests the power Apple and Google have in avoiding government regulation.
In the summer of last year, Epic decided to challenge the technological status quo by allowing Fortnite players to save money by purchasing their in-game currency directly through its website. Unfortunately, in doing so, Apple blocked the gaming company from the iPhone and iPad and then removed the game from the app store.
The decision would inspire Epic to file a pair of antitrust lawsuits against Apple and Google, arguing that the companies had created a market monopoly. While the court has not decided the case’s outcome, the events have inspired several lawmakers to begin their push.
The new legislation was co-sponsored by three senators: Democrats Richard Blumenthal and Amy Klobuchar and Republican Marsha Blackburn. According to Blumenthal, “This legislation will tear down coercive anticompetitive walls in the app economy, giving consumers more choices and smaller startup tech companies a fighting chance.”
Last month, 36 state attorneys general partnered together in July to file an antitrust lawsuit against Google Play and its 30% for digital products. This practice, mixed with the company’s reliance on its app store as default, has caused lawmakers and regulators to question the tech company about its intentions. Google has lowered the fees for smaller developers to 15%, but that seems to be a performative gesture in response to growing public pressure.
The Open App Markets Act would change a few key aspects of the app economy. The most significant change would require Apple and Google to allow third-party apps to download and install on the device through third-party stores and websites. It would also empower companies on the app to inform users about cheaper options available on other platforms, such as buying V-Bucks directly from Epic Games rather than through the Apple App Store.
Much of the information used to inform the Open App Markets Act comes from an April hearing where the Senate Subcommittee on Competition Policy, Antitrust, and Consumer Rights called in witnesses from Spotify, Tile, and Match Group. They all claim that Apple’s and Google’s exclusive control and the charging of a commission for their products has negatively affected their business endeavors.
Not everyone is happy with the bill. “This bill is a finger in the eye of anyone who bought an iPhone or Android because the phones and their app stores are safe, reliable, and easy to use,” writes Adam Kovacevich, CEO of the left-leaning tech advocacy group Chamber of Progress. “And Congress has better things to do than intervene in a multi-million dollar dispute between businesses.” Kovacevich is a former Google executive, which has raised some eyebrows that he’s advocating for his former employer.
But the major app companies have spoken out, and they find this proposal to be a wise one. The Coalition for App Fairness, a collective of app creators, has been one of its most vocal supporters. “The bipartisan Open App Markets Act is a step towards holding big tech companies accountable for practices that stifle competition for developers in the U.S. and around the world,” writes CAF Executive Director Meghan DiMuzio.
This policy decision implicates that the pressure on Apple and Google continues to grow. Lawmakers worldwide are looking to find ways to push back the two tech giants hold over their own devices. Both companies face scrutiny from the European Union, the United Kingdom, Australia, Japan, Korea, and other markets.
