Executives from the two companies, along with Tile Inc., which makes a tracking device for consumers, urged lawmakers at a Senate hearing Wednesday to tackle the dominance of Apple and Google over the digital marketplaces where users download apps.
Although Apple and Google hold a duopoly in the Western world’s app store ecosystem, much of the ire was directed at Apple, which charges big developers 30% of revenue, a cut that witnesses at the hearing said amounts to a “tax.”
“Apple abuses its dominant position as a gatekeeper of the App Store to insulate itself from competition and disadvantage rival services like Spotify,” Horacio Gutierrez, Spotify’s chief legal officer, told lawmakers. The streaming service competes with Apple Music. Apple’s restrictions on developers, he added, “are nothing more than an abusive power grab and a confiscation of the value created by others.”
U.S. senators question Apple and Google on app store dominance
By Diane Bartz, Stephen Nellis and Paresh Dave
Reuters
WASHINGTON (Reuters) -A panel of U.S. senators questioned officials from Apple Inc and Alphabet Inc s Google on Wednesday about the dominance of their mobile app stores and whether the companies abuse their power at the expense of smaller competitors.
Amy Klobuchar, the top Senate Democrat on antitrust issues, said Apple and Google can use their power to exclude or suppress apps that compete with their own products and charge excessive fees that affect competition.
App makers like music streaming service Spotify Technology SA and dating services giant Match Group, which owns the Tinder app, have long complained that mandatory revenue sharing for sales of digital goods and strict inclusion rules set by Apple s App Store for iPhones and iPads, along with Google s Play store for Android devices, amount to anticompetitive behavior.
Publishing date: Apr 21, 2021 • 2 hours ago • 3 minute read •
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WASHINGTON A panel of U.S. senators questioned officials from Apple Inc and Alphabet Inc’s Google on Wednesday about the dominance of their mobile app stores and whether the companies abuse their power at the expense of smaller competitors.
Amy Klobuchar, the top Senate Democrat on antitrust issues, said Apple and Google can use their power to “exclude or suppress apps that compete with their own products” and “charge excessive fees that affect competition.”
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Sen. Mike Lee, R-Utah, arrives for a Senate Judiciary Committee hearing on voting rights on Capitol Hill in Washington, Tuesday, April 20, 2021. Lee joined a U.S. Senate subcommittee Wednesday on allegations of anticompetitive conduct by Apple and Google as witnesses from Spotify, Match.com and Tile testified on their experiences with the U.S. mobile app superpowers.
Bill Clark, Associated Press
Apple and Google were back on the congressional hot seat Wednesday to respond to allegations that both companies operate their smartphone app stores in ways that suppress competition and help the U.S. tech behemoths reap billions in profits.
Apple put through the wringer by Spotify and Tile in Senate hearing
Image: SOPA Images/LightRocket via Gett
2021-04-21 16:27:27 -0700
In a contentious hearing Wednesday, Apple fended off complaints from Spotify, Tile, Match Group, and several senators over competition on its App Store.Â
Minnesota Democrat Sen. Amy Klobuchar said, in her opening remarks, that she isn t angry about success. We simply want to make sure that capitalism keeps going in a strong, strong way, she said, adding, that in this situation, it doesn t seem like that s happening. Â
Anyone who owns an iPhone, iPad or Apple Watch has to get their mobile apps through the Apple-owned App Store. Its standard fee is 30 percent of App Store sales, making it