- Congress claims Apple is stifling innovation in blockchain technology.
- The lawmakers have raised concerns about App Store guidelines.
US lawmakers have written to the CEO of Apple, Tim Cook, accusing the company of implementing policies that hinder innovation in blockchain technology and non-fungible tokens (NFTs). The legislators are accusing the tech giant of restricting App Store to curb competition.
In the letter, Gus Bilirakis and Jan Schakowsky, the Chairman and Ranking Member, respectively, of the House Subcommittee on Innovation, Data, and Commerce, highlighted the challenges Web 3 developers were facing on App Store in monetizing their projects using crypto and NFTs.
“It appears Apple may also use its market dominance oppositely, trying to maximize its profits by introducing rules to the App Store that ‘purposefully limit choice and stifle innovation at the expense of user experience,” the letter read. “While Apple has argued that these rules increase scrutiny by creating a walled garden, many are concerned that Apple has used the App Store as a weapon against competitors.”
The lawmakers cited instances where some cryptocurrency companies have had to reduce the utility of their apps on the App Store, saying the tech giant was increasing its profit at the expense of allowing innovation to thrive.
Coinbase and Axie Infinity
For instance, the US-based cryptocurrency exchange Coinbase was reportedly forced to remove its NFT transfers from its wallet app on iOS because Apple Store guidelines required a 30% charge on transactions. The exchange claims that the guidelines were impossible to comply with since Apple’s in-app purchase system did not support crypto.
Additionally, the legislators cited an instance where Axie Infinity, an NFT-based online video game, was forced to deploy a ‘lite’ version of its app on the Apple Store, excluding important NFT capabilities.
Apple has until August 14 to respond to the claims and update the legislators about the App Store guidelines and how they could stifle competition. The legislators maintain that if Apple could support innovation in blockchain technology and NFTs, it could strengthen American technology leadership.
