The Biden administration has accused Apple and Google’s app stores of stifling competition. A new report released Wednesday by the Department of Commerce’s National Telecommunications and Information Administration (NTIA) found that the competitive landscape in the mobile app ecosystem “is not a level playing field that is detrimental to developers and consumers.” It turned out that The report also made several policy proposals that could improve the ecosystem and open up competition.
The investigation was launched as part of the 2021 Executive Order on Competition, and included consultations with various industry stakeholders from private industry, civil society and academia, according to the NTIA. Also included is a review of over 150 comments submitted in response to
This report summarizes what industry watchers already know: innovation enabled by mobile phones and downloadable apps is a barrier to market entry facing developers, excessive and restrictive rules, overly complicated app review processes, and significant fees that developers are forced to pay to access consumer devices.
“Our review suggests that while the mobile app store model offers a range of benefits for both app developers and users, it also creates sub-optimal competitive conditions,” the report said. “The policies that Apple and Google have in place in their own mobile app stores have created unnecessary barriers and costs for app developers. These impediments impose costs on companies and organizations that deliver new technology: Apps are featureless and costly to develop and roll out. , customer relationships are undermined and many apps are unable to reach large numbers of users.”
Both Apple and Google disputed the report’s findings. (AP has posted their comments here.) By and large, Apple’s position remains the same, with its regulations focused on providing consumer safety and security. Google, on the other hand, points out that it offers more competition and choice. (For example, Android already allows sideloading.)
The new report not only summarizes the market situation, but also makes various recommendations on how to improve various areas to boost competition. The report suggests, for example, the need for a more transparent app review process. Pre-installed apps and self-preferred restrictions. Disallow rules that restrict other means of installing apps, such as sideloading. support for third-party payments; support for linking from the app to the developer’s website. more.
It also says that big tech companies should be restricted from using sensitive business data obtained from third-party developers to help launch their own competing apps. This is such a common practice at Apple that it’s even been called “Sherlock” after a famous example.
However, recommendations are just ideas, not policies. This report merely serves to solidify and clarify the Biden administration’s position on the app store competition. As the report notes, “Congress should enact legislation” and “relevant agencies should consider measures” to limit anti-competitive behavior. There are also areas that need further research, such as “selection screens” (some argue that they only provide selection awareness), and app pre-installation and the relationship between Apple and Google and device makers and carriers. It also suggests whether the law should prohibit other agreements between .
In other words, the actual action is still in the hands of regulators and lawmakers, as it was months before the report was released.
The Biden administration has had mixed success so far in actually holding tech giants accountable. The Justice Department is now suing Google over its digital advertising monopoly, while Meta beats his FTC to move forward with its latest acquisition. The DoJ has not yet sued Apple, but it is filing and reviewing Epic Games’ antitrust lawsuit. Meanwhile, record lobbying spending by tech giants including Apple and Google helped block a bipartisan bill to curb anti-competitive behavior from advancing in Congress.
Of course, President Biden clarified his position on mass technology abuse in an op-ed published in The Wall St. Journal earlier this month. As for competition, he said he still has a lot of work to do.
“Once technology platforms get big enough, many will find ways to promote their products while excluding or disadvantaged competitors, or charging competitors big bucks to sell on the platform. “My vision for our economy is one where everyone — small businesses, sole proprietorships and entrepreneurs — can compete on a level playing field with large corporations.” “
