Google and Apple app stores
On Wednesday, the US unveiled the Open Application Marketplaces Act, which aims to increase competition in the app shop market, which is dominated by the Apple Store and Google Play.
The Open Application Marketplaces Act was introduced in the US on Wednesday, led by Senator Marsha Blackburn and Richard Blumenthal.
Talk about the need for legislative regulation of the digital app market has been going on for a long time. The factor that prompted the US authorities to develop the bill was lawsuits and lobbying in Congress on this issue on the part of application developers. Major developers such as Epic Games and Spotify (SPOT) have complained to Congress and the courts that Apple (AAPL) and Google (GOOGL, GOOG) are tightly controlling and restricting their business.
The bill would seek to ensure that app shops do not disadvantage certain developers and allow them to open third-party app shops. It would also prohibit these companies from "unreasonably favouring or ranking" their own apps or those of their business partners over others.
Lawmakers also believe that the current duopoly in the market hurts users and app developers alike, as there is not enough competition in the app shop market to drive down prices.
Apple and Google argue that the fees they charge on app purchases are standard in the market and that it costs money to set up and run the app shops they operate. The companies have also pointed out that their controls over third-party apps in the Apple Store and Google Play protect the privacy and security of user data. Senator Richard Blumenthal, who heads the bill, said in an interview with CNBC on Wednesday that these arguments by Apple and Google are "completely far-fetched" and are "an excuse to maintain their monopoly position".
Under the open app markets bill, the Federal Trade Commission and state attorneys general can take action against the platforms.
On Wednesday, an Apple spokesperson responded to news of the bill by highlighting the App Store's achievements in guaranteeing the privacy and security of user data and the merits of the app shop as an "unprecedented engine of economic growth and innovation". A Google spokesman declined to comment.
