U.S. lawmakers say decision in Apple / Epic fight demonstrates need to update laws

WASHINGTON, Sept. 10 (Reuters) – U.S. lawmakers determined to tighten antitrust laws said Friday that a judge’s decision to give only “Fortnite” creator Epic Games a partial victory in his fight with Apple Inc. (AAPL.O), was further proof of the need for new laws to limit Big Tech.

Earlier Friday, a U.S. federal judge overturned some of Apple’s App Store rules, forcing the company to allow developers to send its users to other payment systems in a partial victory for Epic and other application manufacturers. Read more

U.S. Sen. Amy Klobuchar, chair of the Senate Judiciary Committee’s antitrust group, said the resolution only addressed some of her concerns about app stores. “We need to pass federal legislation on app store conduct to protect consumers, promote competition, and encourage innovation,” it said in a statement.

In a briefing with reporters, Apple’s general counsel Katherine Adams defended the company’s practices, saying they benefit iPhone users by protecting their privacy. “Instead of limiting innovation or competition, the App Store has turbocharged it, ensuring that all developers have a chance to compete,” he said.

Klobuchar had teamed up with his Senate Democrat Richard Blumenthal and Republican Sen. Marsha Blackburn to introduce a bill in August that would ban large app stores, such as Apple’s Google and Alphabet Inc. (GOOGL). O), which force application providers to use their payment system, among other measures. Read more

U.S. Rep. Ken Buck, a Republican, along with a fellow Democrat, introduced a similar measure in the House.

Buck and Blackburn said in a joint statement that the sentence was a step in the right direction, but they agreed to show why their bill was needed.

“Apple has abused its power to intimidate and take advantage of small businesses,” they said in a joint statement. “All companies should be able to communicate with their customers and not be held hostage by monopolistic behavior.”

House Judiciary Committee Chairman Jerrold Nadler and Rep. David Cicilline, chairman of the antitrust subcommittee, also called for tougher antitrust laws after the resolution. The House Judiciary Committee voted in June to pass six antitrust bills, four aimed directly at Big Tech.

“It is clear that the courts continue to narrowly interpret antitrust laws in favor of monopolies,” they said.

Diane Bartz Report in Washington Additional Report by Stephen Nellis in San Francisco Matthew Lewis Edition

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