tl;dr – The Open App Markets Act - International Center for Law & Economics
Focus Areas:    Platforms | Privacy

tl;dr – The Open App Markets Act

Background… The U.S. Senate is considering legislation—S. 2710, the Open App Markets Act—that would, among other restrictions, bar app stores from requiring app developers to use the store’s own in-app payment system. The bill was introduced by Sen. Richard Blumenthal (D-Conn.), who has argued that it would “open the app economy to new competitors and give mobile users more control over their own devices.”

But… The app store market is competitive and mobile users already have a choice of relatively open and relatively closed platforms. More open platforms, like the Google Play store, offer users the benefits of greater customization and a broader range of apps and payment options. More closed platforms, such as Apple’s App Store, foreclose some of these options, but instead promise users greater privacy and security and a more curated experience that can ensure better device operation. 

However… Requiring closed platforms to allow the use of alternative payment options would see large developers and rival payment processors get the benefit of the app store’s investments without paying for them. The Open App Markets Act would substitute regulatory fiat for consumer choice, sacrificing the benefits currently enjoyed by many consumers.

Read the full explainer here.

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