Lawmakers Probe Apple Over Stifling Blockchain Innovation
Representatives Gus Bilirakis (R-FL) and Jan Schakowsky (D-IL) have jointly addressed a letter to Apple CEO Tim Cook, raising concerns about the company’s App Store guidelines and their potential stifling effect on emerging technologies, such as distributed ledger technology (DLT) and nonfungible tokens (NFTs). The letter, sent yesterday, seeks clarity on whether Apple’s policies hinder innovation and limit the growth of these transformative technologies.
US lawmakers share concerns Apple's App Store is stifling blockchain innovation https://t.co/j1gsobCodz
— The Block (@TheBlock__) July 29, 2023
Apple’s App Store Guidelines under Scrutiny
In the communication, the lawmakers highlighted the apparent use of App Store guidelines by Apple to both profit from and diminish the functionality of crypto-related applications. They pointed out instances where Apple compelled the deployment of “lite” versions of certain apps, including the case of Axie Infinity, as an illustrative example. The lawmakers emphasized the possibility that such actions by Apple could impede the United States’ position as a leader in emerging technologies. They voiced concerns over the potential negative impact on innovation and American technological dominance in the global tech landscape.
The Chairman and Ranking Member of the Innovation, Data, and Commerce Subcommittee asserted that Apple’s App Store guidelines may have unintended consequences by constraining competition and acting as a barrier to innovation. While Apple argues that these limitations bolster security by creating a “walled garden” environment, critics fear that the company is leveraging its platform to undermine competing technologies.
Push for Accountability in Tech Industry
Transparency and accountability in Big Tech’s practices are at the forefront of the lawmakers’ concerns. They aim to level the playing field within the industry to ensure that American ingenuity continues to thrive unimpeded by anticompetitive practices. This is not the first time Bilirakis and Schakowsky have raised questions regarding Apple’s App Store policies. They had previously written a similar letter to Apple, specifically inquiring about guidelines applied to apps originating from China, including TikTok.
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The letter to Apple comes amid ongoing scrutiny of major tech companies and their practices, with a focus on promoting fair competition and safeguarding innovation. As the dialogue between Congress and tech giants evolves, the outcome of these discussions could have significant implications for the future of technology and its potential to foster groundbreaking advancements in various fields.
