Today, U.S. Senators Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), Mike Lee (R-Utah), Amy Klobuchar (D-Minn.), and Dick Durbin (D-Ill.) introduced the bipartisan Open App Markets Act, which would set fair, clear, and enforceable rules to promote competition and strengthen consumer protections within the app market. Google and Apple currently have gatekeeper control of the two dominant mobile operating systems and their app stores that allow them to exclusively dictate the terms of the app market, inhibiting competition and restricting consumer choice.
“Big Tech giants have operated as unaccountable gatekeepers of the mobile app economy, forcing American consumers to use their app stores at the expense of innovative startups that threaten their bottom line,” said Senator Blackburn. “Our bipartisan Open App Markets Act would ensure a freer and fairer marketplace for consumers and small businesses by promoting competition in the app marketplace and opening the door to more choices and innovation.”
“Our bipartisan legislation will break tech giants’ ironclad grip on the app economy,” said Senator Blumenthal. “For years, Apple and Google have acted as gatekeepers, building up anticompetitive walls to squash their competition and drive up costs for consumers. This much-needed measure will create a fairer, more competitive app marketplace that will benefit mobile users and developers alike. Leveling the playing field for startups and smaller tech companies to join the app economy will spur innovation, lower prices, and give consumers choice.”
“The Open App Markets Act is essential for restoring competition to the mobile ecosystem,” said Senator Lee. “Big Tech platforms are controlling market access and extracting excessive fees to stifle competition. Our bill will allow developers to innovate and reach consumers by draining the moat that has isolated Big Tech from competing based on merit.”
“Competition is critical to protecting small businesses and consumers, spurring innovation, and promoting economic equity. Yet a few gatekeepers continue to control the app marketplace, wielding incredible power over which apps consumers can access. This raises serious competition concerns,” said Senator Klobuchar. “By establishing new rules for app stores, this legislation levels the playing field and is an important step forward in ensuring an innovative and competitive app marketplace.”
“The days of Big Tech’s anticompetitive, price-gouging business practices are over;” saidSenator Durbin. “Our bipartisan Open App Markets Act places important limits on dominant gatekeeping companies in the app store market, like Apple and Google. These clear, fair, and enforceable rules will open the app markets back up to competition and give consumers more choices. I look forward to working with Republicans and Democrats to make it law.”
BACKGROUND
- Mobile devices are central to consumers’ economic, social, and civic lives, and the mobile app market is a significant part of the digital economy. In 2024 alone, consumers worldwide spent 92 billion U.S. dollars on the Apple App Store, and about 35.7 billion U.S. dollars on the Google Play Store.
- Both Apple and Google have appeared to use their powerful gatekeeper control to stifle competition in the app store market.
- Apple has prevented the creation of third-party app stores on iPhones, required that apps exclusively use their own expensive payment system, and penalized app developers for telling users about discounted offers.
- These strict terms close off avenues of competition and drive up prices for consumers.
- Startups also face serious challenges when Big Tech gatekeepers are able to prioritize their own apps to the disadvantage of others, make use of competitors’ confidential business information, and block developers from using features on a consumer’s phone.
THE OPEN APP MARKETS ACT
The Open App Markets Act would:
- Protect developers’ rights to tell consumers about lower prices and offer competitive pricing;
- Protect sideloading of apps;
- Promote competition by opening the market to third-party app stores, startup apps, and alternative payment systems;
- Make it possible for developers to offer new experiences that take advantage of consumer device features;
- Give consumers greater control over their devices;
- Prevent app stores from disadvantaging developers; and
- Establish safeguards to preserve consumer privacy, security, and safety.
Click here for bill text.
