The information technology (IT) industry is often puzzling to legislators and regulators. The industry is technically complex and incredibly fast-moving, and because information technology is so diversifi ed, the industry rarely speaks to governments with one voice. IT industry groups often approach policymakers about a common concern, yet advocate for different solutions. However, all companies—even when they differ on policy—are increasingly attempting to show how their position benefitd the public interest. Usually this means appealing to broad social goals like innovation, openness, jobs, or economic growth. The issue is made even more confusing when opposing groups say their positions will create the same result of “more innovation.”

When you peel back the rhetoric, however, most of the policy differences among IT companies are the result of competing business models. IT companies constantly experiment with new business models for their products and services. Some license their software or sell subscriptions, while others give away software to generate hardware and services revenue. More recently, we’re seeing free software and online services that are supported entirely by advertising. In reality, there is nothing inherently superior to any of the business models. While each has its own particular benefi ts and costs, it is clear that business model competition benefi ts innovation and consumer choice.

Yet, as the IT industry lobbyists become more sophisticated, some are pushing policies that benefi t themselves at the expense of competitors with different business models. Often this is done by conflating how they do business— their business model—with public interest values and goals. While there may be genuine public support for similar policy measures, company lobbyists are driven by profits—not the public interest.

As public officials wade through the complexities of technology policy, they should consider the following principles to ensure that new policies promote goals that benefi t the public—without needlessly promoting or locking-in one business model at the expense of another:

  • Many Software Business Models Compete Against Each Other. Ad-based, licensing, and services models all compete in the
    market for various IT products.
  • There are Multiple Public Interest Goals to Be Balanced. Backward compatibility, accessibility, environmental sustainability
    and interoperability are all potential public interest goals that must be balanced. No single goal is supreme.
  • Specify Goals, Not Standards. Adhere to a goals-based policy that allows the industry to innovate and compete to satisfy public interest goals, without limiting how the industry achieves those goals.

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