Apple (AAPL) CEO Tim Cook met with U.S. lawmakers on Wednesday to push back against a proposed law aimed at protecting children online. The bill, called the App Store Accountability Act, would require companies like Apple to verify the age of every app store user to make sure that minors aren’t exposed to harmful content. Instead of supporting this, Cook argued for a different approach in which parents confirm their child’s age when setting up an account. Apple says that this method is better for privacy and less intrusive than asking for official documents.
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In a private meeting with members of the House Energy and Commerce Committee, Cook explained that app store operators shouldn’t be forced to collect age documents from users. He said it’s more reasonable to let parents provide the information themselves. Representative Gus Bilirakis, who leads the committee’s tech subcommittee, said that he met with Cook but still plans to move ahead with the bill. While some changes might be made, the legislation has support from both Democrats and Republicans.
This issue is part of a larger fight over how to protect kids online. Companies like Meta (META) want app stores to do more to protect minors, while Apple and Google (GOOGL) prefer letting app developers add their own safety features. Meanwhile, states like Utah, Texas, and Louisiana have passed laws requiring tech companies to verify users’ ages and get parental consent for anyone under 18. Now that Congress is getting involved, companies are lobbying hard to shape the final rules. Earlier this year, Apple introduced a new tool that lets parents share their child’s age range with apps without giving away personal details.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 21 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $297.31 per share implies 7% upside potential.
