Apple and Google’s app stores have ‘gatekeeper’ powers and should be renewed, the Commerce Department said.

Washington
CNN
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The Biden administration took its biggest swipe at app stores run by Apple and Google on Wednesday, with a new report accusing the two tech giants of “gatekeeping” power that has led to a “superior” level of competition in digital markets.

The report, published by the Commerce Department, found that Apple ( AAPL ) and Google ( GOOG ) “play a significant gatekeeping role in controlling (and limiting) how apps are distributed” and have created various fees and rules to impose on app developers. An uneven playing field.

“All of these factors translate into potential losses for consumers: inflated prices due to fees collected by gatekeepers, stifled innovation by policy decisions to limit smartphone capabilities, and a loss of choice for apps that aren’t revealed or even accessible to smartphone users,” the report said.

The 48-page report threw its weight behind the White House and led to public criticism of major app stores. department.

Google did not immediately respond to a request for comment. In a statement, Apple said its app has benefited developers and supported hundreds of thousands of jobs. In the past, Apple has argued that its control over iOS app distribution helps promote user privacy and security.

“We respectfully disagree with the report’s many conclusions that ignore our investments in innovation, privacy and security,” said an Apple spokesperson, “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.”

Wednesday’s report, published by the Commerce Department’s office tasked with advising the president on technology issues, did not initiate the regulatory process. Instead, it offers policy recommendations, such as restrictions on the apps that Apple and Google can pre-install or set as default on their respective operating systems, or giving users the right to install apps from any source.

The report called for an increase in the budget for US antitrust enforcement. Restrictions on certain App Store restrictions regarding in-app payments; and the Federal Privacy Act, which sets clear standards for data privacy.

Many of the report’s recommendations echo provisions in federal legislation that received bipartisan support in the last Congress but failed to become law.

The findings were informed by public comments submitted to the department in the months leading up to the report.