As Congress continues their antitrust legislation efforts by consulting CEOs of some of the largest corporations in the world, America’s small businesses are being left out of the conversation and left in the lurch. We have had concerns from day one about these bills and the unintended consequences our small business members would face.
Several aspects of the Open App Markets Act (S. 2710/H.R. 7030) and American Innovation and Choice Online Act (S. 2992/H.R. 3816) cause concern for the small businesses that drive innovation in the app economy, but the most alarming are the provisions that would dismantle critical safety and security measures. Unfortunately, the infrastructure our small business developers rely on to keep consumers safe from malware attacks and nonconsensual surveillance would disappear. When developers are stripped of the privacy and security tools they need, each and every one of us becomes the next target of a cyber attack.
Imagining a world where Congress passes legislation that strips privacy provisions is bad enough, but doing so while simultaneously failing to pass a national privacy law would be two steps in the wrong direction for small business developers and the consumers for whom they create technology. But don’t just take it from us. Below are sentiments from real small businesses in the app economy who will feel the impact if federal privacy legislation remains an afterthought.
“My concern with the antitrust bills is that they would undermine security and privacy on the smart devices our clients’ customers use. I don’t think the bill sponsors appreciate how much the platforms do to secure the ecosystem and enforce privacy protections. Right now, that dynamic enables small firms, like MotionMobs, to add tremendous value for clients by solving complex problems that used to be only possible for bigger companies.
“Unfortunately, the bills would prohibit the privacy and security framework we rely on to create these solutions. If these bills are enacted, smaller companies like mine would be forced to go back to troubleshooting and debugging everyone’s compromised devices. We don’t want to leave the world of developing the innovations of tomorrow and go back to being the world’s Geek Squad, we’re beyond that. Technologists across the app ecosystem deserve consistency and the American public deserves data privacy – we’re urging Congress to focus on passing a comprehensive federal privacy law.”
Morgan White, Director of Business Development, MotionMobs
“One area where Congress is moving forward is on improving children’s privacy. REGO’s Mazoola app is the only Children’s Online Privacy Protection Act (COPPA) certified digital wallet that prioritizes privacy and security protections for parents to have a safe way of welcoming their kids to financial services and literacy. We are supportive of the draft privacy legislation, and among the other improved child privacy provisions, we are glad to see that it keeps the COPPA self-certification in place while increasing FTC oversight over those programs to ensure they are fulfilling their obligations.
“Although tech companies need to do far more to protect children, lawmakers are moving antitrust legislation that could weaken cybersecurity standards in the name of ‘competition.’ These changes could make it easier for criminals to sideload malicious code by bypassing the gating process that helps ensure official app stores’ security and privacy measures remain intact. More significantly, we are concerned that this legislation could prohibit some of the critical parental control, privacy, and security features that parents rely upon to keep their children safe.
“We look forward to working with Congress as they update federal privacy laws and hope Members will reconsider moving ‘antitrust’ legislation that could potentially put children’s safety at risk.”
Rick Lane, Member, REGO Board of Advisors
“Equitable workplace innovation requires a secure foundation for all players in the app economy. Congress’ inaction around a federal privacy law is putting our essential infrastructure at risk and furthers the innovation gap between the small and large players in the app ecosystem. If America wants to continue to be diverse, global leader when it comes to technological innovation, we need to be able to rely on consistent, clear rules around data privacy.
“Developers work tirelessly to create life-changing technology that revolutionizes the way we experience our lives, ranging from connected health apps to platforms that train and inspire the next generation of technologists. We innovate and create with intention, care, and purpose and it’s time for Congress to do the same. I urge Congress focus on what matters most to small businesses in the app economy and to their customers – swiftly pass comprehensive privacy legislation. The future of the app economy depends on it.”
Chris Sims, President, CAVU
“I understand what Congress is hoping to do with pending antitrust legislation, but unfortunately the mark is being missed big time, and small businesses in the app economy are actually facing the most harm.
“The unintended consequences associated with legislation aimed to reel in Big Tech will, unfortunately, have major impacts on ‘Small Tech.’ These antitrust bills include measures like forced sideloading and other bad privacy and security practices. By passing these bills without a federal privacy framework in place, Congress is essentially telling companies like mine to ‘figure it out,’ while large companies have the resources to pivot, figure it out, and still maintain their consumer trust.
“I’m not saying ‘I’m a small business who is afraid to compete with the big guys’ – I’m saying I want FAIR competition. The pending antirust legislation puts more barriers to innovation, hurts small business, and is an ultimate harm to a competitive app economy.”
Julie Yack, Chief Operations Officer, Colorado Technology Consultants
“As a small business that wants to make a big impact, Southern DNA counts on consistency and transparency when it comes to consumer trust. We need to ensure that digital tools, services, and the rules around those tools and services, don’t conflict with the carefully planned digital infrastructure that keeps our clients and the people they serve safe.”
“The reality is there are active measures in both of the antitrust bills that lead to major privacy and security implications that only the large companies can afford to bounce back from. Inconsistency and limitations around privacy are a liability for small businesses like mine when it comes to competition with larger names. Once there is a breach of privacy—so a breach of consumer trust—there will be a shift from users downloading apps from small dev shops like Southern DNA to an audience that only feels comfortable working with the big names. This just furthers the competition gap these antitrust bills are hoping to close.”
“Instead of doubling down on small businesses through antitrust legislation, I urge Congress to focus their efforts on passing federal privacy legislation.”
Chris Adams, Partner & Chief Operations Officer, Southern DNA