Senators Chuck Grassley and Amy Klobuchar reintroduced the American Innovation and Choice Online Act (AICOA) this week. The bipartisan bill aims to prevent large tech platforms like Apple from favoring their own products over competitors. Apple formally opposed the legislation, claiming it imports policies from the European Union that compromise user security and child safety.
Key details
- The bill targets platforms with at least $175 billion in average annual gross revenue.
- It applies to companies reaching 34 percent of U.S. households or monthly active users over age 12.
- Provisions prohibit companies from locking users into default settings or misusing nonpublic business data.
- The act mandates support for third-party app marketplaces and alternative payment systems.
Why it matters
This bill signals a shift toward European-style regulation in the U.S. market, mirroring the Digital Markets Act. If passed, it would force Apple to allow third-party app stores, directly challenging the App Store business model. Apple is already using its experience in the EU to lobby against the bill, warning that similar rules prevented the launch of Siri AI features in Europe with iOS 27. While Apple maintains these rules undermine security, services like Setapp already offer alternative app distribution models for Mac users. Watch to see if other impacted companies like Meta and Google join Apple in a coordinated effort to prevent a floor vote.
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