On 25 May 2021, ACT | The App Association kicked off the App Makers Tour of Europe with its first stop in Romania. During this webinar, we engaged with local app developers, policymakers, and academics. Our speakers discussed the Romanian tech ecosystem and considered the impacts of impending tech regulation like the Digital Markets Act (DMA). Moderated by the App Association’s Morgane Taylor, the panel consisted of:

  • Vlad Roman, Competition and State Aid, Platform Economy Attaché, Permanent Representation of Romania to the European Union (EU)
  • Sveatoslav Vizitiu, CEO and Founder, Wello
  • Gabriel Dombri, CEO, Tapptitude
  • Cezara Panait, Head of Digital Policy, Europuls

If you missed the event, read the recap below or watch the recording here!

How will the Digital Markets Act (DMA) affect Romanian app developers?

To begin, Vlad Roman, of the Permanent Representation of Romania to the EU, highlighted the various obligations in the DMA that are particularly relevant to the developer community. Mr Roman stressed that gatekeepers are the main target of the regulation and that the DMA aims to ensure that small players are safe from unfair trading practices and able to access additional benefits, such as data.

Cezara Panait, of the Romanian think tank Europuls, agreed with Mr Roman’s presentation and considered the various opportunities presented by the DMA. However, Ms Panait also cautioned against the risk of overregulation. To avoid unintended, negative consequences on app developers and other digital players, Ms Panait recommended introducing more flexibility into the DMA. Such flexibility ensures that the rules can adapt to different actors and dynamic digital markets.

Gabriel Dombri, CEO of the Romanian app development company Tapptitude, explained that entrepreneurs often encounter knowledge gaps when it comes to the capabilities of the European Union. For most small businesses, it takes valuable resources like time and energy to understand the impacts of government intervention and to react accordingly. Given the inevitable ripple effects of the DMA, Mr Dombri stressed that the ability to predict the practical implications of the new obligations on gatekeepers is essential for app developers to prepare themselves and adapt to the change. Currently, however, such an understanding of the practical implications is missing from the DMA, Mr Dombri stated. On sideloading, for example, he raised the question of who would be responsible for building the tools to actually enable safe sideloading. He further questioned who would control these new tools once they are built and how other business actors could access them. Mr Dombri stressed that these are just some of the questions that policymakers must answer to predict how the DMA may impact app developers and the app ecosystem as a whole.

What works and doesn’t work in the Romanian app ecosystem?

Both developers highlighted that certain aspects of the current system work well and must be preserved after the DMA enters into force. Mr Dombri emphasised that new market entrants heavily rely on the current certainty and predictability of the app ecosystem as well as its low barriers to entry. Sveatoslav Vizitiu, CEO and Founder of the kids’ health app Wello, added that parents would not download apps for their children from random websites on the internet, but they trust the curated environment of the app stores. Romania’s app market experienced incredible growth over the past several years. Mr Dombri explained that investors were initially quite risk-averse, but that a new culture of risk-taking attracted new capital and more entrepreneurs. Both developers also mentioned Romania’s substantial strength in outsourcing, which better connected the country to others within and beyond the EU and led to positive societal impacts. Neither Mr Dombri nor Mr Vizitiu experienced any of the competitive issues with gatekeepers that the DMA aims to address. On the contrary, Mr Vizitiu applauded Apple’s recently launched Small Business Program and suggested evidence exists showing that the large actors are listening to small developer voices.

However, both Mr Dombri and Mr Vizitiu also pointed out some of the challenges they face in Romania. In particular, they stressed the difficulty of accessing local funding and finding qualified employees. Mr Vizitiu added that, without a marketing department, it is difficult to build a recognizable brand and gain visibility outside of the app stores.

What role can app developers play in future regulatory processes?

Ms Panait underscored that while she endorses the harmonised approach taken by the European Commission on this proposal, it is important to ensure that each Member State has the necessary resources to effectively implement the new rules. Whether at the regional or EU level, she stressed that an open dialogue between the Commission and industry is necessary to engage with app developers, civil society, and academics.

Adding on to Ms Panait’s point, Mr Roman highlighted the benefits of the current regulatory dialogue process provided for in the DMA proposal. He also encouraged app developers to continue to engage in the development of new tech regulation.

We thank all our panellists for making this a great event and look forward to the next stop on the App Makers Tour of Europe in Germany! Register for the webinar on 17 June 2021 here.