WASHINGTON—Today, the National Telecommunications and Information Administration (NTIA) released a new report called, “Competition in the Mobile Application Ecosystem.” However, instead of encouraging competition to thrive through consumer choice and innovation, NTIA is encouraging the very type of regulations that will pick multi-billion-dollar winners and losers in the marketplace at the expense of Americans.
The idea that the mobile application marketplace is not competitive is a myth peddled by some who seek to have their competition—from both new innovators and existing companies—crushed by onerous regulations.
This fact—that the app store marketplace is very dynamic and competitive—can be seen by the increasing quality and selections of app ecosystems with decreasing service fees available in the marketplace. Those that do not prioritize user convenience, privacy, security and affordability lose because consumers do not want to use those products. And because of this competition, Americans enjoy the greatest technology in the world. That is because of a robust and competitive economy, and that is present in the App ecosystem.
You only see this in a competitive marketplace.
Unfortunately, this report focuses on corporate talking points instead of consumers. And rather than protect consumers, its recommendations shield the profits of massive corporations like Spotify, Match Group and Epic Games—which the report often credits by name.
“Mega corporations, not consumers or small businesses, are the main beneficiaries of the proposed government seizure of app stores,” said NetChoice Vice President and General Counsel Carl Szabo. “It’s sad to see our government embracing such cronyism, especially in a diverse and competitive marketplace that has allowed for consumers to have better, safer products, at a lower cost.”
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