US Lawmakers Revive the Open App Markets Act for Enhanced Competition and Innovation

Big Tech’s influence over the app economy faces renewed scrutiny as lawmakers revive the bipartisan “Open App Markets Act.” On June 24, U.S. Senators Marsha Blackburn, Richard Blumenthal, Mike Lee, Amy Klobuchar, and Dick Durbin introduced this bill, seeking to institute enforceable regulations that promote competition and enhance consumer protections within the app marketplace. According to Senator Blackburn, the legislation aims to address the monopolistic practices of Apple and Google, who allegedly maintain gatekeeper control over the two leading mobile operating systems and their respective app stores.

The proposed legislation argues that this control stifles competition and limits consumer choices. Senator Blackburn emphasized that Big Tech companies have functioned as “unaccountable gatekeepers,” prioritizing their profits over innovative startups that pose a threat to their market dominance. The Open App Markets Act intends to create a more equitable marketplace by fostering competition and facilitating greater consumer options. The bill outlines several key objectives, including:

– Ensuring developers can inform consumers about lower prices and provide competitive pricing.

– Allowing the sideloading of apps. – Opening markets to third-party app stores, startup applications, and alternative payment systems. – Enabling developers to leverage consumer device features for new user experiences. – Granting consumers increased control over their devices.

– Preventing app stores from placing developers at a disadvantage. – Safeguarding consumer privacy, security, and safety. While similar to a previous version introduced in 2021, this updated bill includes critical modifications. These include protections for intellectual property and national security concerns, as well as provisions prohibiting punitive measures against developers for remote app access.

Notably, the burden of proof necessary for Apple or Google to restrict third-party app access has been significantly lowered. Given the past industry pushback, the revised Open App Markets Act is expected to encounter fierce opposition from major tech companies. In the previous iteration, Apple, Google, Amazon, and Meta invested heavily in lobbying efforts to thwart legislative progress, spending nearly $95 million.