Apple slams revived US bill aimed at curbing Big Tech
What's the story
Apple has slammed the American Innovation and Choice Online Act (AICOA), a bipartisan bill reintroduced by Senators Chuck Grassley and Amy Klobuchar. The proposed legislation seeks to curb the market power of big tech companies like Apple, Amazon, Google, and Meta. It is similar to the European Union's Digital Markets Act (DMA), which prohibits large platforms from favoring their own products or services over those of competitors.
Bill implications
AICOA's criteria for big tech companies
The AICOA would apply to platforms with an average annual gross revenue of $175 billion or more, and that reach 34% of US subscriber households or 34% of monthly active users over the age of 12. If passed, Apple would be subject to its restrictions. The bill prohibits companies from unfairly favoring their own products/services, misusing nonpublic business-user data against small businesses, limiting competitors' access to key platform features, among other things.
Privacy fears
Apple claims AICOA would undermine privacy, security, child safety
Apple has voiced strong opposition to the AICOA, claiming it would undermine privacy, security, and child safety protections. The company also said that the bill would make it harder for businesses to operate in the US. "We strongly disagree with the Senate's consideration of European-style regulation that would hamper innovation and force changes consumers never asked for," Apple said in a statement to MacRumors.
Innovation concerns
Similarities to EU's DMA and Apple's concerns
Apple has also warned that the AICOA could have a similar effect as the DMA, stifling innovation and reducing privacy protections. The company has previously faced challenges in bringing new features to Europe due to disagreements over interoperability rules under the DMA. The proposed legislation would allow third-party app marketplaces and alternative payment methods, which Apple argues could compromise user protections on its App Store.
Supporters
Supporters of the AICOA and their rationale
The AICOA is backed by Mozilla, Proton, DuckDuckGo, Yelp, and Y Combinator. It would also affect Google, Amazon, and Meta if passed. The bill's sponsors have said it was designed to "preserve safety, privacy, intellectual property, national security and constitutional protections." They added that the legislation includes provisions to ensure covered platforms can prevent fraud and protect safety, user privacy, non-public data, or platform security.