Gene Burrus: Championing Fairness in the App Economy
Gene Burrus serves as the global policy counsel for the Coalition for App Fairness, a nonprofit organization that unites a diverse group of app and game developers and service providers, including major players like Epic Games, Spotify, and Match Group. The coalition’s mission centers on advocating for an equitable digital marketplace that empowers developers and enhances consumer choice.
The State of Global Antitrust Enforcers
This week, antitrust professionals from over 67 nations are convening in Washington for the American Bar Association’s annual Antitrust Spring Meeting, an important event that allows competition experts to assess the evolving legal landscape. With representatives from various legal traditions and government structures, there’s a shared conviction: the mobile app economy is increasingly under threat due to monopolistic practices by two dominant entities—Apple and Google.
The Gatekeeping Power of Apple and Google
Apple and Google have established themselves as gatekeepers of the mobile ecosystem, controlling which software reaches consumers, which payment systems are approved, and what portion of every transaction they collect. This level of control over billions of users’ access to digital products is unprecedented. Unlike traditional computing environments, where users can freely install software without needing permission from giants like Microsoft or Dell, mobile platforms operate under strict, often opaque rules.
Historical Parallel: A Lesson from the Past
Our tolerance for this scenario is particularly glaring when we consider the historical context. Two decades ago, a global consensus emerged against similar monopolistic practices. The enforcement actions at that time were crucial to safeguarding competition and innovation in technology. Today’s mobile devices—integral to managing finances, health records, and personal communications—are similarly constrained. It raises a critical question: Why are we accepting this now?
Legislative Action: A Global Response
A growing body of evidence highlights these concerns globally. Notably, the European Commission has fined Apple for restricting developers’ ability to promote alternative purchasing options outside the App Store. Moreover, legislation in places like Japan and South Korea has mandated that Apple and Google allow alternative app stores and payment systems, reflecting a broader push for fairness.
In Brazil, a settlement established new commission benchmarks for third-party transactions, while India’s competition authority is actively investigating Apple’s substantial market influence in the region. The UK’s Competition and Markets Authority has designated Apple’s mobile ecosystem as having strategic market status, paving the way for further enforcement.
Diverging Views on Consumer Safety
Apple and Google argue that their stringent control is necessary to protect consumers from malware and fraud. However, this narrative appears increasingly self-serving as the prevalence of scams and malicious applications highlights significant lapses in their oversight. Evidence shows that more competition could lead to better safety protocols, as transparency and accountability spur improvements in security effectiveness.
The Need for Interoperability and Innovation
What global enforcers seek to validate are principles like interoperability, which allows consumers flexibility across platforms; affordability, working to eliminate excessive fees that inflate digital product prices; and innovation, ensuring startups can compete fairly against behemoth platform terms. Protecting intellectual property rights for developers is also crucial for empowering them to control their creations.
The Urgency of Fairness Amidst AI Advancements
The rapid evolution of artificial intelligence adds a new layer of urgency to these issues. With significant investment flooding into AI startups, the next wave of consumer applications will predominantly be mobile-focused. If dominant platforms continue to dictate the availability of these tools and set restrictive financial terms, the promise of innovation may be stunted before it fully emerges.
Global Standards for Developers and Consumers
As enforcement approaches vary across countries, a unifying principle emerges: developers in different regions should enjoy equal freedoms in software distribution—whether in Tokyo or São Paulo—and consumers should have similar choices regarding app stores. The drive for open competition transcends national borders, especially given the global nature of platform companies.
Challenges of Fragmented Enforcement
Global fragmentation in enforcement invites regulatory arbitrage, allowing powerful entities to sidestep fair competition. By converging on shared objectives and collaborating, international regulators can create a healthier mobile ecosystem that truly reflects the technological advancements we aim to achieve.
The Call to Unity in Regulatory Efforts
The gathering of international enforcers in Washington presents an opportunity to align on these crucial issues. By sharing insights and learning from one another, there is potential to build a mobile marketplace that supports innovation and fairness—fulfilling the promise of technology in a truly democratic space.