U.S. Senators Chuck Grassley and Amy Klobuchar this week reintroduced the American Innovation and Choice Online Act (AICOA) that targets big tech companies like Apple, and Apple is not happy to see it again.
The bipartisan bill is reminiscent of the European Union’s Digital Markets Act, prohibiting large platforms from prioritizing their own products or services, limiting competitors’ access to key platform features, locking users into default settings, and more. This is a reworked version of the same bill that did not come to a vote in 2022.
In a statement to WoozadApple said AICOA would undermine protections for children’s privacy, security and safety, while making it more difficult to do business in the United States.
We strongly disagree with the Senate’s consideration of EU-style regulation that would hinder innovation and force changes that consumers never asked for, while undermining the privacy, security, and child safety protections they rely on every day. Apple is proud to be a driver of innovation, job creation and economic growth in the United States, where some of the world’s most innovative companies have designed technology that has changed the world. Importing failed European policies will not increase competition – it will make it harder to do business here at home.
AICOA aims to “restore competition and accessibility online” by preventing digital platforms “from abusing their market power to stifle competition, undercut businesses’ prices online, and raise prices for U.S. consumers.” This would allow the Justice Department, the Federal Trade Commission and state attorneys general to challenge online platforms for exclusionary conduct that harms competition.
It applies to platforms that generate at least $175 billion in average annual gross revenue and reach 34% of U.S. subscribing households or 34% of U.S. monthly active users over the age of 12. Apple would be subject to the restrictions if AICOA passes. Under the current AICOA wording, businesses cannot do the following:
- Unfairly favor their own products or services.
- Misuse of business users’ non-public data to copy and compete with small businesses.
- Unfairly limiting competitors’ access to key platform features.
- Prevent business users from accessing their own data or moving it from one digital platform to another.
- Retaliation against users or business users who raise legal issues.
- Unfairly enforcing terms of service in a way that harms competition.
- Condition businesses’ access to the platform, or placement of products on the platform, on the purchase or use of unrelated services.
- Lock users in default settings.
- Ranking or presentation bias compared to similarly situated business users.
Apple says AICOA would have the same impact as the Digital Markets Act, hurting innovation, weakening privacy protections, and delaying new product features. Most recently, Apple said it would not be able to introduce Siri AI in the European Union when iOS 27 launches due to the inability to reach an agreement with the European Commission on DMA interoperability rules.
Like the DMA, the AICOA would allow third-party app marketplaces and alternative payment methods, which Apple says would undermine the protections of App Store users. Apple also claims that AICOA rules mandating access to an open platform would give the most sensitive user data to any company that wants it.
The bill’s sponsors say AICOA was written to “preserve security, privacy, intellectual property, national security, and constitutional protections,” and that it includes provisions ensuring that covered platforms are able to prevent fraud and protect security, user privacy, nonpublic data, or platform security.
Along with Apple, AICOA would impact Google, Amazon and Meta. It is trusted by Mozilla, Proton, DuckDuckGo, Yelp, and Y Combinator, among others. Senators Josh Hawley, Dick Durbin, Sheldon Whitehouse and Cory Booker are co-sponsors.
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