Technology and our daily lives have become intertwined in such a seamless way that we hardly notice the resources we have at our fingertips. Even at the turn of the century, nobody could have guessed the role that our devices would play. Today, our smartphones are much more than simple means of communication; they are pocket computers, health advisors, professional cameras, and a myriad of other helpful tools.
A smartphone’s ability to play multiple roles comes from the power of the digital marketplace at our fingertips – otherwise known as the app store. While on the surface, all may seem like it’s working, below the surface issues are coming to light about the gatekeeping role dominant platforms, such as Apple, play with their store—and they are nothing to ignore. Apple has continuously used its power as the sole app store regulator to crush innovation, harm developers, and prevent consumers from accessing total freedom when browsing through the app store.
Many developers worldwide and in Arizona face harmful restrictions and protocols at the hands of large tech companies, like the 30 percent transaction fee on purchases made through in-app payments as well as unfair self-preferencing methods. These harmful tactics diminish innovators’ ability to bring products to market and reach a broad consumer audience. Furthermore, these behaviors limit choices for consumers in the app marketplace.
As someone who represents the great state of Arizona in the northern Phoenix area, I see the impacts of a giant crushing the little guys. As Vice-Chair of the legislature’s Commerce Committee, I understand how important it is to have an economy where competition thrives. This is the pillar of our system, and it encourages innovators to keep up with the demands of consumers. But when Apple treats its app store like a so-called “walled garden,” it keeps the underdogs and the innovators out. And that’s how they want it.
In August, the Open App Markets Act was introduced in the U.S. Senate by Senators Richard Blumenthal (D-CT), Marsha Blackburn (R-TN), and Amy Klobuchar (D-MN). U.S. House of Representatives Ken Buck (R-CO), Hank Johnson (D-GA), and David Cicilline (D-RI) followed suit and introduced the companion legislation in the U.S. House of Representatives. This bipartisan, bicameral piece of legislation would promote a fair app ecosystem and allow developers to innovate while providing choices to consumers.
I see the Open App Markets Act as a step in the right direction to hold dominant tech corporations accountable for practices that stifle competition for developers in the U.S. and worldwide. The bill aims to halt anti-competitive tactics and level the playing field by blocking app stores from forcing in-app payment systems, banning self-preferencing schemes, and breaking down the barriers preventing developers from directly communicating with their consumers.
This bill is a commonsense solution to monopolistic app practices and is gaining momentum and support in the halls of Congress. I highly value commerce and business in our great state, and I strongly urge the entire Arizona Congressional delegation to support and cosponsor this critical piece of legislation.
Steve Kaiser is the state representative for Legislative District 15, representing north Phoenix and parts of Cave Creek. He serves as Vice Chairman of the Commerce committee.