Open App Markets Act Can Rein in Big Tech

Open App Markets Act Can Rein in Big Tech

By The Fatty Fish Editorial Team - September 9, 2022

The Open App Markets Act (OAMA) is intended to protect the ability to sideload apps and prevent operators of app marketplaces, particularly Apple and Google, from “self-preferencing” their own products. The legislation addresses complaints from iOS and Android app developers, who say Apple and Google charge unfair fees on in-app purchases (e.g., the dreaded Apple tax) and lock down their iOS and Android platforms to either completely disable or heavily discourage installing apps outside their stores. The bill targets companies that operate app stores with more than 50 million U.S. users, stating that they shouldn’t engage in certain potentially anti-competitive behaviors. Proponents say consumers would benefit from cheaper prices, more innovation, better products, and more consumer safeguards. Here are a series of opinion pieces we found of interest relating to OAMA.

Nearly 90% of Developers Would Support Open App Markets Act According to New Survey

In an opinion piece for the Coalition for App Fairness, “Nearly 90% of Developers Would Support Open App Markets Act According to New Survey,” the Coalition reports that research conducted by ClearPath Strategies showed nearly 90% of the app developers surveyed support passage of targeted legislation, such as OAMA, aimed at prohibiting anti-competitive or self-preferencing practices in the App Store and other dominant platforms. David Bluestone, founder and partner of ClearPath Strategies, was quoted saying, “As developers learn about the Open App Markets Act, there is overwhelming support for an app ecosystem where barriers are removed and they have the opportunity to innovate.”

Based on the research, developers believe this legislation will help them create better products for customers and hire more developers for their companies. The app developers surveyed stated OAMA would create more competition and opportunities for innovation and growth in the online digital marketplace. Read the full article on Coalition for App Fairness.

Facebook Says Apple Is Too Powerful. They’re Right

In an opinion piece for Electronic Frontier Foundation (EFF), “Facebook Says Apple is Too Powerful. They’re Right,” Cory Doctorow, EFF special advisor, argues that Facebook is right that users should be able to choose app stores other than Apple, and Apple is wrong to claim that users who are given this choice will be exposed to predatory and invasive apps. Apple changed how iOS, their mobile operating system, handles users’ privacy preferences so that owners of iPhones and other iOS devices could indicate that they don’t want to be tracked by any of the apps on their devices. If they do, Apple blocks those apps from harvesting users’ data. Nearly all iOS users opted out of tracking, which Facebook claims cost the company $10 billion in just the first year. Beyond the tracking issue, iOS devices such as the iPhone use technological countermeasures to block “sideloading” (installing an app directly without downloading it from Apple’s App Store) and to prevent third parties from offering alternative app stores.

This issue is the subject of ongoing legislation in the U.S. and EU. In the U.S., OAMA would force Apple to get out of the way of customers who want to use third-party app stores and apps; in the EU, the Digital Markets Act contains similar provisions. Some app makers, upset with the commercial requirements Apple imposes on the companies that sell through its App Store, have sued Apple for abusing its monopoly power. Read the full article on Electronic Frontier Foundation.

A Better Strategy to Rein in Big Tech

In an opinion piece for The Hill, “A better strategy to rein in Big Tech,” Joel Thayer, president of the Digital Progress Institute, recommends the U.S. Senate brings OAMA and the American Innovation and Choice Online Act to the floor for a vote. He argues that OAMA, designed to even the odds for consumers by promoting competition in app stores, is broadly supported across party lines and ready for a vote. Google and Apple (most famously) have leveraged their dominant position to stifle consumer choice of apps on their respective stores.

Thayer writes that although there are many details to be worked out with the American Innovation and Choice Online Act, which aims to address self-preferencing by internet giants, both bills should be brought to the Senate floor for a vote. Read the full article on The Hill.

Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

The Fatty Fish Editorial Team

The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.