As we begin to look back and take stock of 2021, certainly one of the key themes in the technology policy space is the rapid convergence of the competition and privacy policy areas. Lawmakers in a handful of states, key committees in Congress, and policymakers around the world are taking a closer look at the relationship between large digital platforms’ market power and consumer outcomes on privacy, resulting in a wide range of policy solutions that attempt to balance both imperatives.
Unfortunately, from our perspective, some of the measures considered by Congress and in state legislatures do not quite strike the appropriate balance. Some proposals, for example, require app platforms to make compromises when it comes to the privacy and security of their ecosystems in the name of competition. Many of these sacrifices would undermine overall trust in app stores, and, as a result, in many of our member companies. That is a tradeoff that we do not believe needs to exist and represents a policy solution with which many ACT | The App Association members take issue. As legislators and regulators scramble to introduce antitrust proposals directed to the largest tech platforms, it is vital that they take account of how such proposals stand to disrupt the secure app ecosystem and negatively affect the very competitors they seek to empower.
This week we share with you a new whitepaper that explores the growing nexus between antitrust and privacy in relation to current digital platform competition proposals under consideration in Congress and in many states. We believe there is a lack of exploration to date on how these bills negatively impact privacy, specifically from the small app developer perspective, and this will continue to be an important issue to monitor through the rest of this Congress at the very least.
Key findings of our report include:
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Some of the new platform competition proposals considered by Congress and in the states would require app platforms to make compromises when it comes to the privacy and security of their ecosystems that would undermine overall trust in app stores, harming our member companies.
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Consumers increasingly rely on platform privacy features, implemented by app developers, to protect themselves and their children from privacy-related abuses. Certain proposals would presume the illegality of those protections.
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Sideloading mandates would undermine user trust in apps writ large, resulting in a scenario where consumers are most likely to download apps made by established companies with brand name recognition, instead of smaller developers.
You can access the full whitepaper by clicking on the image below.