Feds: App store model harmful

A new report from the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) indicates the current mobile app store model is harmful to consumers and developers and recommends policy changes to fix it. Mobile apps have become an essential to daily life. Apple and Google are the main gatekeepers over these apps, NTIA found in its “Competition in the Mobile Application Ecosystem” report. The companies’ policies have the potential to harm consumers by inflating prices and reducing innovation. NTIA’s recommendations are part of the Biden Administration’s push to promote innovation and competition to level the economic playing field. NTIA is the president’s principal advisor on telecommunications and Internet policy. Among the recommendations for changes include giving consumers more control over their devices. App store operators should not be able to “self-preference” their apps in an anticompetitive manner. Operators should lift restrictions on alternative ways for consumers to download and install apps. Addressing limits on in-app purchasing options by banning requirements that developers use the app store operators’ in-app payment system. New legislation and additional antitrust enforcement actions are likely necessary to boost competition in the app ecosystem, the report cites. If enacted, the recommendations would put more fair rules in place in the mobile app ecosystem to the benefit of consumers and competition. (Department of Commerce 02/03/23) #ICYMI - NTIA calls for Changes to Boost Competition in Mobile App Markets (govdelivery.com)