Congress should make reining in Big Tech a priority before adjourning

By NC State Senators

Todd Johnson (District 35)

Jim Perry (District 7)

Before members of the current U.S. Congress head home to campaign for the November election, their priorities should include passage of the Open App Markets Act – legislation that would clamp down on big technology companies and the monopoly they now hold over development of apps for mobile devices.

This has been an issue of concern to many of us for a long time. And recent polling in several political swing states, including North Carolina, shows a large majority of likely voters also are concerned and demanding action. Enacting the Open App Markets Act is, as the well-known saying goes, both good policy and good politics.

Monopolistic and anti-competitive practices employed by Google and Apple, through their roles in creating the two dominant mobile device operating systems, hamstring efforts by small- and medium-sized technology innovators in North Carolina  to develop and distribute mobile apps to facilitate information exchange and on-line commerce. 

Those huge tech companies impose unnecessarily restrictive rules on the technical aspects of app development. In most cases, they also require that apps be distributed only through their respective app stores, rather than through independent outlets on the Internet the way we all acquire other forms of software. And many purchases made via app must include an additional fee of up to 30% that goes straight into the pockets of Google or Apple.

The Open App Markets Act would fix this broken app marketplace by requiring that independent app stores and third party in-app payment systems be allowed to flourish. Additionally, the legislation prohibits anti-competitive practices, such as “self-preferencing,” by banning app stores from engaging in behaviors that put their products at an advantage over independent developers and competitors. 

Recently, when the Coalition for App Fairness (CAF) sponsored a poll of likely voters in North Carolina, Arizona, Georgia, Nevada, New Hampshire, Ohio, Pennsylvania, and Wisconsin, it turned out that 69% of those surveyed believe Big Tech has too much power. An even more impressive 79% say Congress should pass the Open App Markets Act and open up the mobile app ecosystem to full and free competition. 

Significantly, the legislative proposal already had garnered broad bi-partisan support as it moved through committee reviews in  Senate in Washington, passing that committee by a vote of 20-2.  And CAF’s polling was conducted by firms affiliated with both Democratic and Republican political activities. 

In the CAF survey, 72% of respondents agreed with the statement: “Big Tech companies, like Apple and Google, limit competition and restrict innovation from independent app developers.”  And it would be wise for North Carolina officials to note 61% of likely NC voters said they would feel more favorable toward their members of Congress or Senator for supporting this bill.

So, it’s clear that this is a winning concept for lawmakers, whatever their ideology might be.

With all of that in mind, it’s just common sense to make the Open App Markets Act the law of the land. Every member of North Carolina’s congressional delegation should get behind this badly needed initiative to make sure that the app marketplace is free and open to every person and organization with a good idea to move forward.