US Senator Elizabeth Warren today announced a radical plan to "break up great technology." As a candidate for the 2020 presidential election, Warren is proposing new restrictions on how much freedom tech companies must have to control proprietary platforms.
It wants to prevent companies, including Apple, from using the monopoly power of app stores to levy charges
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The blog post focuses on Amazon, but CNBC has confirmed that Warren is also targeting Apple. A "platform utility" would be defined as any business with over $ 25 billion in annual revenue. Apple easily meets this goal.
According to Warren's vision, Apple would not be allowed to both offer their own apps and operate the suspended App Store.
This is based on an undercurrent of industry complaints that it is anticompetitive that Apple can offer Apple Music on the iPhone as a standard app and can also run a Walled Garden App Store, which requires music services, by 30% of all To transfer in-app revenue to Apple.
In the blog post This rule is described as prohibiting companies from owning the platform utility and participants in the platform.
These companies are prohibited from owning both the Platform Utility and the participants in this platform. Platform utilities should be fair, equitable and non-discriminatory to users. Platform Utilities may not transmit or share data with third parties.
In the case of Amazon, Warren says that Amazon Marketplace and the Amazon Basics product line would need to be split into separate companies. Similarly, Google's ad offerings would be independent of Google Search. For more information on the potential impact of policies on Alphabet's business, see 9to5Google's coverage.
If the App Store needs to be expanded to be Apple-specific, the App Store would have to be run as a standalone company and iPhone maker Apple would be forced to allow competing app stores on its hardware to compete with Apple App Store and competitors to improve.
Even if Warren took office, who knows how much these plans need to be watered down and changed to become a law. Nonetheless, this poses a significant threat to Apple Services' revenue, a business area that Apple strongly supports because of its growth potential.
It is also expected that other political leaders will consider tougher regulations for tech companies, with some describing the term "Silicon" as describing Valley Abusers Amazon, Apple, Facebook and Google.
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