The Biden administration’s report says that the app stores of Apple and Google are restricting competition, which is hurting developers and consumers. Policy suggestions in the report include creating a level playing field for app stores, which would allow more competition and innovation.
The investigation focused on how digital platforms could be used to discriminate against competitors and promote monopolies. NTIA said it was interested in studying ways in which digital platforms could be used to manipulate users’ online behaviors, limit access to information, or suppress free speech.
Barriers to entry in the mobile app market have created an oversupply of apps, Apple’s strict controls over what apps are available on their App Store, and high commission rates for developers. These conditions have made it difficult for new developers to gain traction and make a profit, hurting the overall quality of the app ecosystem.
It appears that the mobile app store model has some benefits, but it also creates conditions of competition that are suboptimal. For example, the two companies’ policies in their own app stores create unnecessary barriers and costs for app developers. This obstacle imposes costs on firms and organizations offering new technology: apps lack features, development and roll-out costs are higher, customer relations are damaged, and many apps fail to reach a large number of users.
Apple and Google dispute the AP’s report that their rules are leading to less choice for consumers, but both companies are likely right in some respects. The rules for sideloading applications on Android do offer more choice than what is available on iOS, but it is still limited. On the one hand, this might be seen as a good thing by some because it offers greater security and safety. On the other hand,users who want more flexibility may find themselves without many options.
The report suggests the app market can be improved by a number of measures, including more transparent app review processes, limits on pre-installed apps and self-preferencing, bans on rules that restrict other means of installing apps, like sideloading, support for third-party payments, and support for links to developers’ websites from apps. These changes would help to stimulate competition and create a more diverse marketplace in which users can find the games, applications, and services they want.
Apple has been frequently criticized for “sherlocking” its own products by using proprietary business data acquired from third-party developers to help launch its own competing apps. While the practice is common at Apple, it’s something that other tech giants should be restricted from doing in order to preserve confidential business data.
The Obama administration’s report on app store competition provides some interesting suggestions for limiting anticompetitive conduct, like banning preinstallation deals between Apple and Google/device manufacturers and carriers. It will be up to Congress to enact these policies, though.
The public outcry that followed the release of the SEC’s report on cryptocurrency investing did little to change regulatory attitudes towards digital tokens, which are still under the watchful eye of lawmakers and regulators. While some steps were taken in response to the report- such as CFTC chairman Christopher Giancarlo declaring his agency would be looking into cryptocurrencies – there is still much uncertainty surrounding how the regulation of these assets will play out.
President Obama’s vision of the “default setting” for technology should be to ensure that all Americans have access to broadband, a critical infrastructure that enables economic opportunity and innovation. However, the current tech giants are using their market power to stifle competition, thwart common-sense regulations, and keep prices high for everyday Americans. President Obama should continue to hold Silicon Valley accountable by using his executive powers to open up markets and protect consumers from anti-competitive behavior.
Critics of big tech companies argue that the industry’s increasing dominance has led to a decline in competition and innovation. Some blame the firms for penalizing smaller rivals, while others allege that they use their power to unfairlyinfluence public opinion and manipulate search engines. President Biden has spoken out against these allegations, firmly believing that more needs to be done in order to protect consumers and promote innovation. He believes that increased regulation is necessary to bolster consumer choice and prevent large technology companies from becoming too powerful.
Bernie Sanders’ vision of an economy in which everyone—small and midsized businesses, mom-and-pop shops, entrepreneurs—can compete on a level playing field with the biggest companies is a refreshing change. While tech platforms like Amazon and Facebook are able to make billions by promoting their own products while excluding or disadvantageing their competitors, Bernie’s plan would allow all businesses to have equal access to the internet and the resources it provides. This would level the playing field for smaller businesses, who often have less financial resources and limited exposure to potential customers. It would also help new startups get off the ground without having to worry about being crushed by bigger competitors.
