Credit-card users may soon face lower prices at Apple and Google app stores—and more competition in digital platforms. President Joe Biden’s push to curb credit-card late fees means consumers could expect those changes when checking out on mobile phones or tablets.
The Consumer Financial Protection Bureau (CFPB) will propose a rule next year to eliminate “junk fees” associated with concert tickets, mobile plans and air travel. cap credit-card fees for late payments at $8, from an average of about $31 — saving consumers more than 10 billion dollars a year in late fees.
“We shouldn’t be gouged just because we have to load our cars with the luggage of a family vacation,” said Biden. “It’s unfair—it’s basic fairness that matters here.”Biden was joined by CFPB Director Rohit Chopra, who said that lenders’ use of inflation as an excuse to raise fees “is wrong”.
In a report released Wednesday, the National Telecommunications and Information Administration (an arm of the Commerce Department) echoed developers’ criticism of Apple’s and Google’s dominance in app-economy markets.the current app-store model inflates prices and stifles innovation.
Because of Apple’s and Google’s policies in their own app stores, barriers to entry for developers have increased. These companies’ rules create unnecessary costs for new apps, such as fees charged by third-party software services the companies have included on their platforms.
“Consumers largely can’t get apps outside the app-store model, controlled by Apple and Google. Because of this, developers face hurdles to reaching customers.”The report drew sharp responses from both companies.
In a statement, an Apple spokesperson said that while the report “acknowledges the importance of user privacy and data security,” some of its conclusions ignore “the investments we make in innovation—from strong encryption to facial recognition.”
Google countered that its Android system “enables more choice and competition than any other mobile operating system.”
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