The App Store Tax: How the App Store Limits Consumer Freedom Congress has opportunity to fix the broken mobile economy with Open App Markets Act
Have you ever wondered why you cannot manage your account on many popular apps or why subscription fees are greater while purchasing through an app than through a website? One reason: the app tax.
A video accompanying this announcement is available at: https://youtu.be/5JXDgYSgtzM
App store gatekeepers deny users the ability to choose how and which apps you download onto your mobile devices, claiming security concerns.
“It’s time to bring an end to monopolistic practices that stand in the way of an open, fair, and competitive digital marketplace. Congress has the opportunity to rein in Big Tech through the bipartisan, bicameral Open App Markets Act. This proposal would hold gatekeeper platforms accountable, increase fair competition, and benefit consumers across the nation with greater choice and innovation.” said Rick VanMeter, Executive Director for the Coalition for App Fairness.
The Open App Markets Act would fix the broken mobile app marketplace by requiring mobile gatekeepers to allow third-party app stores and third-party in-app payment systems. 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.
A recent survey found that 68% of voters think Big Tech has too much power and 79% support efforts by Congress to pass the Open App Markets Act and open up the mobile app ecosystem to competition. In California, polling showed that 69% of likely California voters believe Big Tech has too much power and 75% support the Open App Markets Act.
Developers note that a 15-30% fee by dominant platforms, like Apple or Google, represents an enormous portion of their revenue, in many cases an untenably large one. Developers and creators want Big Tech to open their app store platforms so that any company can build software on their own terms and release it to people freely.
For more information, visit appfairness.org.
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