LONDON, UNITED KINGDOM – Association for Competitive Technology (ACT) comments on the impact for startups and small businesses in today’s announcement from the Competition and Markets Authority (CMA) on business software and cloud services.
‘Small app developers benefit from the trust, security, and global reach that app stores provide. They also need clear and predictable rules that give them the confidence to invest, innovate, and grow’, said Stephen Tulip, UK country manager for the Association for Competitive Technology (ACT).
‘Greater flexibility for developers to communicate with their customers about products, services, and purchasing options has the potential to benefit small businesses. However, those benefits will only be realised if the security, privacy, and consumer trust that underpin successful app marketplaces are maintained.
‘For our members, consumer trust is not a nice-to-have – it is fundamental to their success. Anything that makes users less willing to download an app, subscribe to a service, or share their data ultimately harms small developers. That is why our members have consistently raised concerns with the CMA about unrestricted third-party app stores and sideloading. Without strong safeguards and oversight, these measures expose consumers to greater risks from malware and scams, while placing additional security and support burdens on small businesses. While we acknowledge this consultation’s narrow focus on steering, we are concerned that the CMA’s open-ended position of keeping side-loading and third-party app stores under review, increases uncertainty for small developers.
‘Small businesses are the first to feel the impact of regulatory change but the least able to dedicate time and resources to lengthy engagement processes. We therefore hope that the CMA’s planned engagement will not be limited to in-person meetings in London. For many startups and small and medium-sized enterprises (SMEs) across the UK, taking a day away from their business and travelling to London at short notice simply is not practical. Offering virtual engagement alongside in-person meetings would help ensure the CMA continues to hear from the full range of businesses affected by these changes and deliver an outcome that supports innovation, consumer trust, and sustainable competition’.
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About the Association for Competitive Technology (ACT)
ACT is a global trade association for small and medium-sized technology companies. Our members are entrepreneurs, innovators, and independent developers within the global app ecosystem that engage with verticals across every industry. We work with our members to promote a policy environment that rewards and inspires innovation while providing resources that help small businesses raise capital, create jobs, and continue to build incredible technology.