According to a Beijing report, the U.S. was unable to compete with China’s technology companies for market share in days following its introduction of five bills. According to people familiar with the matter, Apple CEO Tim Cook called Nancy Pelosi, House Speaker, and other legislators to warn them of five bills that could end the dominance of technology companies.
According to sources familiar with the matter, Mr. Cook made multiple warnings regarding the bills. According to people familiar with the matter, Cook stated that antitrust laws were too rushed and would harm consumers by limiting innovation and disrupting iPhone services.
Cook expressed concerns to Pelosi, who rejected Cook’s request that the House Judiciary Committee delay the consideration of the bills. Cook was also asked by her to identify specific policies that would be opposed to the bills.
Cook is alleged to have called Pelosi and spoken to other members to warn them about the negative effects of tough antitrust laws. It is unclear who Cook spoke to in Congress.
Apple is also working with lobby organizations to oppose the antitrust legislation. Morgan Reed, the president of App Association, a technology, and telecom company-sponsored industry group, wrote Tuesday to lawmakers that “breaking down platforms and limiting their services to our member companies will harm your constituents.”
Bloomberg has released a secondary report that reveals that Apple is expressing concern about users installing apps outside of its App Store. This issue is being addressed by regulators and lawmakers who also played a significant role in the recent trial against Epic Games Inc.
On Wednesday, the company stated on its website that it requires apps to be downloaded directly from the App Store. This protects users against frauds, secures their privacy, and pays developers for their work. These benefits may disappear if third-party app stores offer less protection or users download an app from a website, PC, or other source and “sideload it” onto their phone.
Sideloading would compromise the security of iOS and expose users not only to third-party apps stores but also the App Store,” said Cupertino’s California-based tech giant. Sideloading would encourage a flood of investment in attacks against the platform due to a large number of iPhone users and sensitive data they have stored — including photos, financial and location information, as well as the high user base.
Sideloading and downloading from third-party apps stores would erase years of privacy features built into Apple’s mobile operating systems. It would make the system more similar to Google’s Android system, which will create fewer options for consumers looking for smartphones. Sideloading, according to the company, would “impede the growth of app economies, harming both developers and users” since privacy-conscious consumers are more likely to download fewer apps.
Apple said: “Allowing sideloading will spur a flood in attacks on iPhone, encouraging malicious actors to develop tools to attack iPhone security at an unprecedented level.”
They also noted that Apple’s resistance to Apple’s move was not coincidental. On Wednesday, the U.S. House Judiciary Committee will discuss six antitrust bills. One of them is sponsored by Rhode Island Democrat Representative David Cicilline. This bill, if it passes into law, would require Apple to allow third-party apps stores to be opened and all its iPhone technology to third-party software developers.
An early copy of the bill shows: It is illegal for an operator of a covered platform to limit or inhibit the ability of a business user access to or interoperate on the same platform, operating systems, hardware, and software features that are available for covered platform operators’ products, services, or business lines.
Apple warned that sideloading apps could be dangerous for children by making it possible for them to ignore parental controls and collect sensitive data.
Apple stated in the report that sideloading was possible because of the huge iPhone user base and sensitive data (photos, location data, financial information) stored on their phones.
Apple faces different antitrust issues than other companies. Apple’s Silicon Valley competitors are being questioned about large mergers (Apple tends only to make small acquisitions), data privacy, and whether they should be split up into smaller companies.