While Apple’s strategy towards NFTs has been criticized, the US Congress has sent a letter to Tim Cook asking for explanations. The aim is to understand whether the App Store policy is stifling innovation.
Congress questions Apple’s approach to NFTs
While Apple has often been singled out for criticism over its policy on non-fungible tokens (NFTs), the US Congress has taken the lead by sending a letter to CEO Tim Cook asking for an explanation.
This request comes after initial concerns were expressed that applications such as TikTok could make “Americans vulnerable to foreign surveillance”. This time, it’s the App Store’s practices regarding Web3 applications that are being questioned:
“Today, it appears that Apple may also be using its market dominance in the opposite direction, trying to maximize profits by introducing rules in the App Store that “deliberately limit choice and stifle innovation at the expense of user experience.” […] In particular, it appears that Apple has used its App Store guidelines to increase its own profits and reduce the usefulness of blockchain apps [and] NFTs […]. “
The Coinbase and Axie Infinity cases
To back up their claims, the members of Congress who sent the letter cite several examples. Firstly, the letter cites the case of the suppression of NFT transfers on the iOS version of Coinbase Wallet. Indeed, while Apple demanded 30% commission on gas fees, Coinbase Wallet teams argued that “for anyone who understands how NFTs and blockchains work, this is clearly not possible” :
Apple’s claim is that the gas fees required to send NFTs need to be paid through their In-App Purchase system, so that they can collect 30% of the gas fee.
– Coinbase Wallet ️ (@CoinbaseWallet) December 1, 2022
In addition, the lite version of Axie Infinity Origins on iOS has also been called into question. Some of the game’s mechanics have been removed on Apple to comply with current regulations, resulting in an incomplete experience.
In response, Congress has sent 21 questions to the company, which has until August 14 to respond. Among other things, the questions ask how apps are approved on the App Store, and the aim is also to understand whether “these guidelines limit American innovation and technological leadership”.
While authorities in the U.S. such as the Securities and Exchange Commission (SEC) are being singled out for their regulatory vagueness, it’s interesting to see that other institutions, such as Congress, are taking an interest in the innovation aspect brought about by the Web3 ecosystem.
