Business and Technology

Apple and Google speak out against tech bills

Apple Inc. and Google warned U.S. lawmakers Tuesday that bipartisan antitrust legislation aimed at curbing the power of big technology companies will threaten the privacy and security of users.

Escalating its opposition to the legislation, Apple sent a letter to Senate Judiciary Committee Chair Dick Durbin; the panel’s ranking Republican, Chuck Grassley; Antitrust Subcommittee Chair Amy Klobuchar; and the subcommittee’s ranking Republican, Mike Lee.

The letter, which was obtained by Bloomberg News, underscores Apple’s push to protect its App Store from government oversight and changes that would disrupt its business model.

“After a tumultuous year that witnessed multiple controversies regarding social media, whistle-blower allegations of long-ignored risks to children, and ransomware attacks that hobbled critical infrastructure, it would be ironic if Congress responds by making it much harder to protect the privacy and security of Americans’ personal devices,” Tim Powderly, Apple’s senior director of government affairs, said in the letter.

Alphabet Inc.’s Google, meanwhile, criticized the legislation in a blog post, saying it would hamstring popular products such as Google Search and Gmail. Like Apple, Google said the bills under consideration would hinder security and privacy and end up harming consumers.

The first bill mentioned in Apple’s letter — legislation sponsored by Klobuchar and Grassley — would require some changes to dominant tech platforms that Apple says would allow iPhone and iPad users to install apps outside of the App Store, a process known as sideloading.

If the bill were to become law, sideloading would upset key elements of Apple’s business model. It would make it difficult or impossible for Apple to collect its 15% to 30% App Store commission, and it would disrupt the company’s privacy and security stance.

A spokesperson for Klobuchar disputed the idea that the bill would undercut security. The bill does not force Apple to allow unscreened apps onto Apple devices,” the representative said in a statement.

The group, which includes Sonos Inc., Yelp Inc. and Zynga Inc. founder Mark Pincus, said in an open letter to Durbin and Grassley that dominant companies are “abusing their gatekeeper status to give themselves and their partners preferential treatment and access on their platforms.

Apple’s letter included similar arguments to those made in last year’s trial with Epic Games Inc. and during speeches from Apple executives, including one from software chief Craig Federighi last year.

Like Alphabet and Amazon.com Inc., Apple has been under scrutiny from governments worldwide about what some consider to be anticompetitive practices.

The Klobuchar-Grassley bill would prohibit companies from giving an advantage to their own products over those of smaller competitors that depend on their platforms.

Critics of the legislation have warned that this would fundamentally change how consumers access popular products like Apple Music, Google Maps and Amazon Prime.

Source: CNet

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