The Biden Administration Takes Aim at Apple and Google’s App Stores
The Biden administration has been calling out Apple and Google for stifling competition in the mobile app ecosystem. A new report, issued by the Commerce Department’s National Telecommunications and Information Administration (NTIA), highlights the issues facing developers and consumers due to the restrictive rules and high commissions charged by the tech giants.
A Level Playing Field?
The NTIA report concludes that the mobile app store model has created a level of competition that is suboptimal. The policies implemented by Apple and Google have led to unnecessary barriers and costs for app developers, including fees for access and functional restrictions that favor some apps over others. These obstacles impose significant costs on firms and organizations offering new technology, resulting in high development and roll-out costs, damaged customer relations, and many apps failing to reach a large number of users.
Industry Response
Apple and Google have both responded to the report’s findings, with Apple maintaining that its rules are focused on providing consumer safety and security. Google, on the other hand, points out that it offers more competition and choice, citing Android’s ability to sideload apps as an example.
Recommendations for Change
The NTIA report makes several policy suggestions aimed at improving the mobile app ecosystem and opening up competition:
- A more transparent app review process
- Limits on pre-installed apps and self-preferencing
- Bans on rules that restrict other means of installing apps, such as sideloading
- Support for third-party payments
- Support for links to developers’ websites from apps
- Restrictions on tech giants using confidential business data acquired from third-party developers to launch competing apps
These recommendations are just that – ideas, not policy. The report only serves to solidify and clarify the Biden administration’s position on app store competition.
A Roadmap for Change
The NTIA report provides a roadmap for change, with several areas warranting further study:
- Choice screens: whether they offer genuine choice or merely the perception of it
- Laws banning preinstallation of apps or other agreements between Apple and Google and device manufacturers and carriers
Real Action is Still to Come
While the NTIA report provides a comprehensive analysis of the issues facing app developers and consumers, real action is still in the hands of regulators and lawmakers. The Biden administration has had mixed success in holding tech giants accountable, with some notable wins (such as the Department of Justice’s lawsuit against Google) and losses (such as Meta’s victory in its data breach case).
The Path Forward
As the debate around app store competition continues to unfold, it is clear that significant changes are needed to create a level playing field for developers and consumers alike. The NTIA report provides a valuable roadmap for policymakers looking to address these issues and promote greater competition in the mobile app ecosystem.
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