Commerce Department report accuses two tech giants of operating mobile app stores that stifle competition.
The Biden administration is taking aim at Apple and Google for operating mobile app stores that it says stifle competition.
The report from the Commerce Department's National Telecommunications and Information Administration says the current app store model — dominated by Apple and Google — is"harmful to consumers and developers" by inflating prices and reducing innovation. The firms have a stranglehold on the market that squelches competition, it adds.
A representative from Apple told The Associated Press that"we respectfully disagree with a number of conclusions reached in the report, which ignore the investments we make in innovation, privacy and security — all of which contribute to why users love iPhone and create a level playing field for small developers to compete on a safe and trusted platform."
Apple has defended the area surrounding its iPhone app store, known as the"walled garden," as an indispensable feature prized by consumers who want the best protection available for their personal information. It has said it faces significant competition from various alternatives to video games on its iPhones. And Google has long defended itself against claims of monopoly.
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