Following today’s announcement and preliminary findings released by the European Commission on Alphabet’s compliance with the Digital Markets Act (DMA), ACT | The App Association issued the following statement:
“Today’s preliminary findings reinforce what we have long cautioned: the DMA’s enforcement does not foster a culture of innovation. Instead, as EVP Riebera said in her statement, its focus is to create ‘a culture of compliance.’ We know from experience that having technology at the speed of government is a losing proposition for consumers and developers alike,” said Morgan Reed, President of ACT | The App Association. “The claims made by the European Commission around Google’s mobile app marketplace, the Play store, once again show how regulators in the EU are focused on the wrong thing. Our members in the EU rely on app stores like Play to provide a constantly updated and improved bundle of services and groundbreaking technology. Simply telling Google they can’t charge for those services guarantees our community will see ever-diminishing updates and improvements. Taking away economic incentives fractures these marketplaces and would put the livelihood of our members at risk.”
Overall, the DMA has resulted in more fragmented markets, increased compliance costs, and fewer opportunities for small to mid-sized developers to reach consumers. While competition regulation is important, it must be implemented in a way that actually benefits small businesses, not just punishes incumbents. We urge implementing regulators to take a more balanced approach that fosters innovation and enables small tech companies to thrive.
About ACT | The App Association & Members
The App Association 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 and for our members to promote a policy environment that rewards and inspires innovation while providing resources that help them raise capital, create jobs, and continue to build incredible technology.
For more information, please visit www.actonline.org.