United States leaders Chuck Grassley and Amy Klobuchar this week re-introduced the American Innovation and Internet Choice Act (AICOA) which targets big tech companies like Apple, and Apple is not happy to see it.
The bipartisan bill is reminiscent of the Digital Markets Act in the European Union, preventing major platforms from favoring their products or services, limiting competitors’ access to key platform features, locking users into default settings, and more. It’s a reworked version of the same bill that didn’t reach the floor vote back in 2022.
In a statement to MacRumorsApple said AICOA would undermine the privacy, security, and protection of children’s safety, while making it more difficult to do business in the US.
We strongly disagree with the Senate’s consideration of European-style legislation that would stifle innovation and force changes consumers never asked for, while undermining the privacy, protection and safety of children they rely on every day. Apple is proud to be an engine of innovation, job creation, and economic growth in the US, where some of the world’s most advanced companies have designed technologies that have changed the world. Importing Europe’s failed policies will not increase competition — it will make it more difficult to do business right here at home.
AICOA aims to “restore online competition and accessibility” by preventing digital platforms from “abusing their market power to stifle competition, undercut online businesses and raise prices for American consumers.” It would allow the Department of Justice, the Federal Trade Commission, and federal attorneys general to challenge online forums for anticompetitive conduct.
It operates on platforms with at least $175 billion in annual revenue and reaches 34 percent of US registered households or 34 percent of US monthly active users over 12 years of age. Apple will be subject to restrictions if AICOA passes. Companies are prohibited from the following under AICOA’s current wording:
- Admiring their products or services unfairly.
- Misusing non-public business user data to copy and compete against small businesses.
- Unfairly restricting competitors’ access to key features of the platform.
- Preventing business users from accessing or moving their data from one digital location to another.
- Retaliating against users or business users who raise legal concerns.
- Misusing the terms of service in ways that harm competition.
- Conditional companies’ access to the platform, or product placement, when purchasing or using unrelated services.
- Locking users into default settings.
- Rowing level or presentation against business users in the same environment.
Apple says AICOA will have the same effect as the Digital Markets Act, hurting innovation, weakening privacy protections, and delaying new product features. Recently, Apple said it will not be able to bring Siri AI to 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, AICOA will allow third-party app marketplaces and alternative payment methods, which Apple knows will undermine the App Store’s user protections. Apple also says AICOA rules that mandate open platform access can give sensitive user data to any company that wants it.
The bill’s sponsors say AICOA was written to “maintain security, privacy, intellectual property, national security and constitutional protections,” and that it includes language to ensure that integrated platforms are able to prevent fraud and protect security, user privacy, non-public data, or platform security.
Along with Apple, AICOA will affect Google, Amazon, and Meta. It is endorsed by Mozilla, Proton, DuckDuckGo, Yelp, and Y Combinator, among others. Senators Josh Hawley, Dick Durbin, Sheldon Whitehouse, and Cory Booker are sponsors.
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