In-App Payment Ban Bill Passes US Congress Threshold... Will Apple’s Commission Revenue Be Limited?
[Asia Economy Reporter Jeong Hyunjin] As the U.S. government and Congress continue to pressure big tech companies, a bill limiting Apple's App Store commission revenue is crossing the threshold of the Washington DC Congress.
According to the Wall Street Journal (WSJ) on the 20th (local time), the U.S. Senate Judiciary Committee passed a bill earlier this month that could limit Apple's application (app) commission revenue with 20 votes in favor and 2 against.
Based on this bill, Apple would have to allow the so-called 'sideloading' feature that installs apps on iPhones without going through the App Store or enable bypassing Apple's payment system within the App Store. This law is created in the same context as the 'In-App Payment Ban Law' enforced domestically.
WSJ reported that Apple CEO Tim Cook called several lawmakers, including Ted Cruz, ahead of the Senate vote, but it was to no avail. Apple argued that allowing sideloading could increase malware infections, threatening privacy and security, but this was not accepted. The bill is expected to be brought to a full Senate vote soon.
Apple has defended that charging app developers a 30% sales commission while providing the digital ecosystem users want is a reasonable level considering the technology Apple offers. CEO Cook argued at an event last October that Apple should not be treated the same as social media companies.
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Republican Senator Mike Lee praised Apple's entrepreneurship at that event but voted in favor of the bill targeting the App Store this time. He criticized big tech companies for wielding overwhelming market dominance.
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