Apple and Google app stores wield ‘gatekeeper’ power and should be curbed, says Commerce Department

Washington
CNN
—

The Biden administration on Wednesday made the biggest swipe ever on the app stores run by Apple and Google, unleashing the power of a “gatekeeper” between the two tech giants that has led to a “suboptimal” level of competition in the digital marketplace. released a new report accusing it of exercising.

According to a report issued by the Department of Commerce, Apple (AAPL) and Google (GOOG) “play an important gatekeeping role by controlling (and restricting) how apps are distributed,” imposing various restrictions on app developers. fees and rules have been created. unfair playing field.

“All of these factors lead to potential losses for consumers: rising prices due to fees collected by gatekeepers, innovation hampered by policy decisions restricting access to smartphone features, apps and Such as the loss of app choices, which even smartphone users can access,” the report said.

The 48-page report casts the weight of the White House behind mounting public criticism of the dominant app store.Department.

Google did not immediately respond to requests for comment. In a statement, Apple said its app store benefits developers and supports hundreds of thousands of jobs. Apple has long claimed that controlling the distribution of iOS apps promotes user privacy and security.

“We respectfully disagree with many of the conclusions reached in the report, which ignore our investment in innovation, privacy and security,” said an Apple spokesperson. spokesperson said. Empower small developers to compete on a secure and trusted platform. ”

A report Wednesday issued by the Commerce Department’s office charged with advising the president on technology issues has not started the regulatory process. Instead, we provide policy recommendations, such as limiting which apps Apple and Google can pre-install or default on their respective operating systems, and giving users the right to install apps from any source.

The report also called for increased budgets for U.S. antitrust law enforcement. Prohibition of some app store restrictions on in-app payments. A federal privacy law that establishes clear standards for data privacy.

Many of the report’s recommendations reflect provisions of federal law that received bipartisan support in the last Congress but did not become law.

The findings were informed by public comments submitted to the State Department in the months leading up to the report.