Wednesday, March 30, 2022

HIGH TECH GIANTS ROBBING SMALL APP DEVELOPERS

I know it is no surprise to how important high tech is to the U.S. economy. That’s why it’s so disturbing to see the way the tech giants are treating the small and medium app developers and threatening their very ability to compete in the marketplace.

Congress is currently considering the Open App Markets Act which seeks to level the playing field a bit. Our delegations certainly should support this bipartisan effort to give the small and medium app developers a fair shake. This important bill will allow developers to create new and innovative apps, providing much needed consumer choice.

This bipartisan legislation only seeks to make the markets a fair environment, where the small developers have a chance to succeed and provide competitive. The major tech platforms have too much power and use this power to hamper the app developers and their apps in favor of the tech platform’s apps.

One of the most egregious offenses is their exorbitant fees (up to 30%) for in app purchases. The developers have no choice but to use the major tech platform’s payment system. This puts them at a severe disadvantage compared to Apple’s and Google’s proprietary apps. They also severely limit the ways that the developers can communicate with their users. These practices limit the ability of app developers to successfully bring their products to market and reach consumers. 

The app developers are not the only losers. Consumers also pay the price – literally through higher costs, and limited consumer choice.

The Open App Markets Act is commonsense policy that would rein in these monopolistic tendencies and behaviors. The introduction of this bill is a major step in the right direction and both consumers and app developers hope congress and senate will VOTE yes on this bipartisan and bicameral effort to protect our small and medium app developers as well as protect consumers.