On 13 July 2021, ACT | The App Association continued its App Makers Tour of Europe. During our third stop in France, local app developers, policymakers, industry representatives, and regulators shared their views on the local app economy and the opportunities and challenges developers face today. Our panel also discussed the Digital Markets Act (DMA) and how it could affect app developers and the broader technology ecosystem.
The webinar began with opening remarks and a warm welcome from the moderator, Morgane Taylor, the App Association’s general manager for Europe. A discussion between industry experts followed the opening remarks. Our panellists included:
- Anne Yvrande-Billon, Director of Economy, Markets and Digital, Arcep
- Éric Bothorel, Member of the National Assembly, La République en Marche (LREM),
- Sandro Gozi, Member of the European Parliament, Renew Europe
- Stanislas Dewavrin, CEO and Founder, Oh BiBi
- Olivier Fréget, Partner, Fréget Glaser & Associates, Member of Renaissance Numérique
If you missed the event, read on for our recap or watch the summary video below. The full recording is available here.
How are regulations, specifically the Digital Markets Act (DMA), affecting app developers?
Opening the discussion, Stanislas Dewavrin, CEO and founder of Oh Bibi, recalled that national and European legislation heavily affects app developers, and they spend a lot of time complying with various rules. Oh Bibi is a mobile game development studio based in Paris that is enjoying resounding success with games such as FRAG, which has over 100 million downloads worldwide. Mr Dewavrin suggested that regulations like the DMA may not be needed, as markets tend to regulate themselves. Instead, he insisted that introducing a form of reciprocity in terms of access to the global markets, including China, is necessary to ensure the emergence of European digital champions.
In his introductory note, Éric Bothorel, Member of the French National Assembly, reviewed the different stages of creating the European digital market, mentioning, in particular, the General Data Protection Regulation (GDPR). Mr Bothorel emphasised that the DMA completes a system that welcomes businesses and, at the same time, promotes the European doctrine of free and undistorted competition. Mr Bothorel stressed that the objective of this doctrine is not to banish or punish specific actors or enterprises but to stimulate market engagement.
‘The DMA completes a system that is business-friendly and at the same time mindful of the European doctrine of free and undistorted competition […] the objective being to banish and punish no one but to stimulate the market so that everyone can find their place in it.’ – Éric Bothorel
In response to a question about the impact of the DMA on small and medium-sized enterprises (SMEs), Member of European Parliament (MEP) Sandro Gozi expressed his support to the proposed regulation. Mr Gozi highlighted that the European Parliament would ensure that the new rules guarantee a form of pluralism to benefit innovators, start-ups, and SMEs. Mr Gozi also emphasised the need to strengthen consumer confidence.
Finally, Mr Dewavrin provided his perspective on the impact multiple app stores and the ability to download third-party apps on all products could have on the app economy. He pointed out that such conditions already exist on Android systems. Moreover, he reminded the panel that users tend to trust the app stores of larger companies more than others for security reasons. Mr Dewavrin stressed that he, as a developer, favours app stores that present the least risk of his apps being hacked.
How might the Digital Markets Act (DMA) impact the app ecosystem, and how can unintended consequences be avoided?
Anne Yvrande-Billon, director of economy, markets, and digital of the French telecom regulator (Arcep), welcomed the DMA proposal as a significant step forward for the future of innovation. However, Ms Yvrande-Billon said the implementation of the regulation could be improved, especially in terms of its flexibility. On this point, she stressed there is a need to individualise the remedies and obligations and that regulators should avoid a one-size-fits-all approach.
‘We need to improve flexibility, which means from the point of view of the experience of sector regulators […] to individualise remedies, individualise obligations, i.e., adapt obligations to business models and avoid one-size-fits-all.’ – Anne Yvrande-Billon
Olivier Fréget, partner at Fréget Glaser & Associates and member of the Renaissance Numérique think tank, questioned the need for a law like the DMA, based on the presupposition that competition law is incapable of dealing with the issues it covers. In contrast, Mr Fréget recalled the fundamental character of the competition law approach, which aims to analyse in a precise and contradictory manner the problems certain players raise within a market to provide appropriate and proportionate remedies. The ex-ante approach of the DMA would allow for intervention and the imposition of remedies before a problem is even identified, which is, according to Mr Fréget, a mistake when dealing with highly dynamic and innovative markets. Mr Fréget concluded that “the DMA is simply regulation for regulation’s sake.”
‘The DMA is simply regulation for regulation’s sake, giving considerable powers to the European Commission. Interoperability can be a solution; imposing it as a general solution, which the DMA provides for some players, is, in my opinion, a considerable error of perspective and is not based on sufficiently serious economic work.’ – Olivier Fréget
Responding to an audience question, Mr Bothorel concluded that the European imperatives of data protection and product security and interoperability are not irreconcilable. He stressed that exceptions to interoperability for reasons of security of services are generally accepted, provided they are not instrumentalised. On the same subject, Mr Fréget pointed out that “interoperability can be a solution, imposing it as a general solution, which is what the DMA provides for certain players, is […] a considerable error of perspective and is not based on sufficiently serious economic work.”