Open App Markets Act

Last updated
Open App Markets Act
Great Seal of the United States (obverse).svg
Long titleA bill to promote competition and reduce gatekeeper power in the app economy, increase choice, improve quality, and reduce costs for consumers.
Announced inthe 117th United States Congress
Number of co-sponsors10
Legislative history

The Open App Markets Act (OAMA) [1] is a proposed antitrust bill in the United States Congress. The Senate version of the legislation, S.2710, was introduced on August 11, 2021, by Richard Blumenthal (D-CT), Amy Klobuchar (D-MN) and Marsha Blackburn (R-TN). [2] On August 13, 2021, a companion bill in the House of Representatives was introduced by Hank Johnson (D-GA) and Ken Buck (R-CO). [3]

Contents

The legislation aims to prevent Apple and Google, operators of the App Store and Google Play, respectively, from engaging in what supporters of the legislation deem anti-competitive practices in app markets. The Open App Markets Act is intended to protect the ability to sideload apps and prevent operators of app marketplaces from "self-preferencing" their own products. On February 3, 2022, the Senate Judiciary Committee advanced the legislation in a 20–2 bipartisan vote. [4]

Background

Both Apple and Google have received national and international scrutiny regarding their operation of their in-house app marketplaces. In Epic Games v. Apple (2020), developer Epic Games sued Apple for restricting applications on its App Store from featuring other in-app purchasing methods. Epic Games founder Tim Sweeney had criticized Apple for taking a 30% revenue cut from purchases made in the App Store. [5]

In July 2021, a group of 36 states and the District of Columbia filed a lawsuit against Google, alleging that the company abuses its market power through Google Play. [6] In August 2021, the National Assembly of South Korea voted to amend the country's telecommunications law to ban Apple and Google from requiring developers to use their in-house payment systems. [7]

Provisions

The legislation applies to companies with 50 million users in the United States that operate app marketplaces. Provisions of the legislation include: [8] [9]

Support and opposition

Support

As of June 13, 2022, the Senate version of the legislation, introduced by Blumenthal, has been co-sponsored by eleven senators. [10] The House companion bill introduced by Johnson, H.R.5017, has seven co-sponsors. [11] Ahead of the Senate Judiciary Committee vote, the Open App Markets Act received support from the CEOs of 20 tech companies, including Spotify. [12] A poll conducted by the Coalition for App Fairness (CAF) found that 84% of app developers surveyed supported the legislation. [13] [14]

The American Economic Liberties Project (AELP), an anti-monopoly organization, urged lawmakers to pass the legislation. [8] Tennessee Republican Marsha Blackburn, a co-sponsor of the legislation, argued that the legislation would "take power away from Big Tech and give it to the free market". Tom Ridge and Janet Napolitano, who served as Secretary of Homeland Security in the Bush and Obama administrations, respectively, have endorsed the legislation on security grounds. [15]

In January 2022, a coalition of Chinese human rights activists and advocacy organizations wrote to the Senate Judiciary Committee in support of the legislation. [16] Signatories to the legislation include Yang Jianli, a former Tiananmen Square activist, the Uyghur Human Rights Project (UHRP), and Tibetan rights groups. The activists argued that: [17]

"If we were allowed to provide apps outside of the censored App Store, also known as sideloading, we would be able finally offer Chinese communities with tools to defeat the Great Firewall, such as Ultrasurf, Psiphon, and FreeGate."

Opposition

Both Apple and Google publicly opposed the legislation, with Google vice president Mark Isakowitz arguing the bill would "destroy many consumer benefits that current payment systems provide and distort competition by exempting gaming platforms, which amounts to Congress trying to artificially pick winners and losers in a highly competitive marketplace.” [8] Apple CEO Tim Cook has criticized the legislation, arguing it would harm user security. [18]

The Chamber of Progress, a tech industry trade group, criticized the bill on user security grounds, arguing that the sideloading provisions of the legislation posed a threat to consumers. [19] Despite voting to advance the legislation in the committee, California Democrat Dianne Feinstein expressed concern that the legislation would disproportionately impact Apple and Google, both of which are headquartered in her state. [20]

Legislative history

CongressShort titleBill number(s)Date introducedSponsor(s)# of cosponsorsLatest status
117th Congress Open App Markets Act. H.R.5017 July 13, 2021 Hank Johnson (D-GA)7Referred to Committees of Jurisdiction.
H.R.7030 March 9, 2021 Hank Johnson (D-GA)20Referred to Committees of Jurisdiction.
S.2710 July 11, 2021 Richard Blumenthal (D-CT)14Referred to Committees of Jurisdiction.

Procedural history

On February 3, 2022, the Senate Judiciary Committee voted to advance the legislation in a 20–2 bipartisan vote, with only Republicans John Cornyn (R-TX) and Thom Tillis (R-NC) voting in opposition. [4]

See also

Related Research Articles

<span class="mw-page-title-main">Marsha Blackburn</span> American politician and businesswoman (born 1952)

Mary Marsha Blackburn is an American politician and businesswoman serving as the senior United States senator from Tennessee. Blackburn was first elected to the Senate in 2018. A member of the Republican Party, Blackburn was a state senator from 1999 to 2003 and represented Tennessee's 7th congressional district in the United States House of Representatives from 2003 to 2019, during which time the National Journal rated her among the House's most conservative members.

<span class="mw-page-title-main">Zoe Lofgren</span> American politician & lawyer (born 1947)

Susan Ellen "Zoe" Lofgren is an American lawyer and politician serving as a U.S. representative from California. A member of the Democratic Party, Lofgren is in her 14th term in Congress, having been first elected in 1994. Lofgren has long served on the House Judiciary Committee, and chaired the House Administration Committee in the 116th & 117th Congresses.

<span class="mw-page-title-main">Chris Murphy</span> American politician

Christopher Scott Murphy is an American lawyer, author, and politician serving as the junior United States senator from Connecticut since 2013. A member of the Democratic Party, he previously served in the United States House of Representatives, representing Connecticut's 5th congressional district from 2007 to 2013. Before being elected to Congress, Murphy was a member of both chambers of the Connecticut General Assembly, serving two terms each in the Connecticut House of Representatives (1999–2003) and the Connecticut Senate (2003–2007).

<span class="mw-page-title-main">Ken Buck</span> American politician (born 1959)

Kenneth Robert Buck is an American lawyer and politician who has represented Colorado's 4th congressional district in the United States House of Representatives since 2015. From March 30, 2019, to March 27, 2021, Buck served as chair of the Colorado Republican Party, having replaced Jeff Hays.

<span class="mw-page-title-main">Microsoft Store</span> Digital distribution platform for Microsoft Windows, Xbox One and Series X/S

The Microsoft Store is a digital distribution platform operated by Microsoft. It was created as an app store for Windows 8 and Windows Server 2012 as the primary means of distributing Universal Windows Platform apps. With Windows 10, Microsoft merged its other distribution platforms into Microsoft Store, making it a unified distribution point for apps, console games, and digital videos. Digital music was included until the end of 2017, and E-books were included until 2019.

<span class="mw-page-title-main">No Oil Producing and Exporting Cartels Act</span> Former congressional bill

The No Oil Producing and Exporting Cartels Act (NOPEC) was a U.S. Congressional bill, never enacted, known as H.R. 2264 (in 2007) and then as part of H.R. 6074 (in 2008). NOPEC was designed to remove the state immunity shield and to allow the international oil cartel, OPEC, and its national oil companies to be sued under U.S. antitrust law for anti-competitive attempts to limit the world's supply of petroleum and the consequent impact on oil prices. Despite popular sentiment against OPEC, legislative proposals to limit the organization's sovereign immunity have so far been unsuccessful. "Varied forms of a NOPEC bill have been introduced some 16 times since 2000, only to be vehemently resisted by the oil industry and its allied oil interests like the American Petroleum Institute and their legion of 'K' Street Lobbyists."

<span class="mw-page-title-main">Big Tech</span> Group of technology companies

Big Tech, also known as the Tech Giants, refers to the most dominant information technology companies. The term most often refers to American technology companies, notably the five largest: Alphabet (Google), Amazon, Apple, Meta (Facebook), and Microsoft. These companies are also known as the Big Five, or excluding Microsoft, the Big Four. Globally, Baidu, Alibaba, Tencent, and Xiaomi (BATX) are the Chinese equivalent of the Big Five. Big Tech can also include smaller tech companies with high valuations, such as Netflix, or non-tech companies with high-tech practices, such as the automaker Tesla.

Apple Inc. v. Pepper, 587 U.S. ___ (2019), was a United States Supreme Court case related to antitrust laws related to third-party resellers. The case centers on Apple Inc.'s App Store, and whether consumers of apps offered through the store have Article III standing under federal antitrust laws to bring a class-action antitrust lawsuit against Apple for practices it uses to regulate the App Store. The case centers on the applicability of the "Illinois Brick doctrine" established by the Supreme Court in 1977 via Illinois Brick Co. v. Illinois, which determined that indirect consumers of products lack Article III standing to bring antitrust charges against producers of those products. In its 5–4 decision, the Supreme Court ruled that since consumers purchased apps directly through Apple, that they have standing under Illinois Brick to seek antitrust charges against Apple.

<span class="mw-page-title-main">SAFE Banking Act</span> Legislation

The SAFE Banking Act, officially H.R. 1595, full title Secure and Fair Enforcement (SAFE) Act, and also referred to as the SAFE Banking Act of 2019, was proposed legislation regarding disposition of funds gained through the cannabis industry in the United States.

The Extreme Risk Protection Order Act is federal gun control legislation to support State, Tribal, and local efforts under "red flag laws" to remove access to firearms from individuals who are considered a danger to themselves or others. Sen. Richard Blumenthal introduced such legislation in March 2018, in the 115th U.S. Congress; and Dianne Feinstein introduced such legislation in February 2019, in the 116th U.S. Congress. The House version of her legislation was introduced by Rep. Salud Carbajal and re-introduced on 14 February 2019, one year after the Stoneman Douglas High School shooting.

<i>Epic Games v. Apple</i> 2020 U.S. lawsuit

Epic Games v. Apple is a lawsuit brought by Epic Games against Apple in August 2020 in the United States District Court for the Northern District of California, related to Apple's practices in the iOS App Store. Epic Games specifically had challenged Apple's restrictions on apps from having other in-app purchasing methods outside of the one offered by the App Store. Epic Games' founder Tim Sweeney had previously challenged the 30% revenue cut that Apple takes on each purchase made in the App Store, and with their game Fortnite, wanted to either bypass Apple or have Apple take less of a cut. Epic implemented changes in Fortnite intentionally on August 13, 2020, to bypass the App Store payment system, prompting Apple to block the game from the App Store and leading to Epic filing its lawsuit. Apple filed a countersuit, asserting Epic purposely breached its terms of contract with Apple to goad it into action, and defended itself from Epic's suit.

The Coalition for App Fairness (CAF) is a coalition comprised by companies, who aim to reach a fairer deal for the inclusion of their apps into the Apple App Store or the Google Play Store. The organization's executive director is Meghan DiMuzio and its headquarters are located in Washington, D.C.

<span class="mw-page-title-main">Digital Markets Act</span> European Union regulation on digital platforms

Regulation (EU) 2022/1925, commonly referred to as the Digital Markets Act (DMA), is an EU regulation that aims to make the digital economy fairer and more contestable. The regulation proposed by the European Commission in December 2020 was signed into law by the European Parliament and the Council of the EU in September 2022. It entered into force on 1 November 2022 and became applicable, for the most part, on 2 May 2023.

<span class="mw-page-title-main">American Innovation and Choice Online Act</span> Proposed American antitrust bill

The AmericanInnovationandChoiceOnline (AICO) is a proposed antitrust bill in the United States Congress. The legislation was introduced by David Cicilline (D-RI) in the House of Representatives as the AmericanChoiceandInnovationOnline Act on June 11, 2021. On October 14, 2021, companion legislation in the Senate was introduced by Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) as S.2992.

<span class="mw-page-title-main">State Antitrust Enforcement Venue Act of 2021</span>

The State Antitrust Enforcement Venue Act of 2021 is a proposed antitrust bill in the United States Congress. The legislation was introduced in the House of Representatives by Ken Buck (R-CO) as H.R. 3460 on May 21, 2021. Companion legislation was introduced in the Senate by Mike Lee (R-UT) as S. 1787 on May 24, 2021.

<span class="mw-page-title-main">Merger Filing Fee Modernization Act of 2021</span>

The Merger Filing Fee Modernization Act of 2021 (MFFMA) is a proposed antitrust bill in the United States Congress. The legislation was introduced in the Senate by Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) as S. 228 on February 4, 2021. Companion legislation was introduced in the House of Representatives by Joe Neguse (D-CO) and Victoria Spartz (R-IN) as H.R. 3843 on June 11, 2021.

<span class="mw-page-title-main">ACCESS Act of 2021</span>

The Augmenting Compatibility and Competition by Enabling Service Switching Act of 2021, or the ACCESS Act of 2021, is a proposed antitrust bill in the United States House of Representatives. The purpose of the legislation is to mandate data portability from Big Tech companies to provide users the ability to switch their data between platforms.

<i>United States v. Google LLC</i> (2020) Antitrust case alleging Google illegally dominates internet search

United States v. Google LLC is an ongoing federal antitrust case brought by the United States Department of Justice (DOJ) against Google LLC on October 20, 2020. The suit alleges that Google has violated the Sherman Antitrust Act of 1890 through anti-competitive behavior in the search engine and search advertising markets.

<span class="mw-page-title-main">AMERICA Act</span>

The Advertising Middlemen Endangering Rigorous Internet Competition Accountability (AMERICA) Act (S.1073) is a proposed bipartisan antitrust bill in the United States Congress. The legislation was introduced by Senator Mike Lee (R-UT) in the 118th Congress on March 30, 2023.

References

  1. ↑ Seitz, Jacob (2022-04-14). "Digital groups rally as Apple pushes back against App Store legislation". The Daily Dot. Retrieved 2022-04-15.
  2. ↑ "Blumenthal, Blackburn & Klobuchar Introduce Bipartisan Antitrust Legislation to Promote App Store Competition | U.S. Senator Richard Blumenthal of Connecticut". www.blumenthal.senate.gov. Retrieved 2022-02-26.
  3. ↑ "Congressmen Johnson, Buck Introduce Bipartisan Plan to Rein in App Store Monopolies". Congressman Hank Johnson. 2021-08-13. Retrieved 2022-02-26.
  4. 1 2 Feiner, Lauren (2022-02-03). "Senate committee advances bill targeting Google and Apple's app store profitability". CNBC . Retrieved 2022-02-26.
  5. ↑ Leswing, Kif (2020-07-24). "Fortnite maker: 'Apple has locked down and crippled' the App Store". CNBC . Retrieved 2022-02-26.
  6. ↑ McCabe, David; Wakabayashi, Daisuke (2021-07-07). "Dozens of States Sue Google Over App Store Fees". The New York Times . ISSN   0362-4331 . Retrieved 2022-02-26.
  7. ↑ Shead, Saheli Roy Choudhury,Sam (2021-08-31). "South Korea passes bill limiting Apple and Google control over app store payments". CNBC . Retrieved 2022-02-26.{{cite web}}: CS1 maint: multiple names: authors list (link)
  8. 1 2 3 Robertson, Adi (2022-02-09). "Everything you need to know about the bill that could blow up the app store". The Verge . Retrieved 2022-02-26.
  9. ↑ Blumenthal, Richard (2022-02-17). "Text - S.2710 - 117th Congress (2021-2022): Open App Markets Act". www.congress.gov. Retrieved 2022-04-04.
  10. ↑ "Cosponsors - S.2710 - 117th Congress (2021-2022): Open App Markets Act, S.2710". www.congress.gov. 17 February 2022. Retrieved 2022-06-14.
  11. ↑ "Cosponsors - H.R.5017 - 117th Congress (2021-2022): Open App Markets Act". www.congress.gov. 2021-08-13. Retrieved 2022-02-26.
  12. ↑ Klar, Rebecca (2022-01-28). "App company CEOs urge senators to back antitrust bill". The Hill . Retrieved 2022-02-26.
  13. ↑ Evers-Hillstrom, Karl (2022-01-31). "8 in 10 app developers back measure to rein in Google, Apple: poll". The Hill . Retrieved 2022-02-26.
  14. ↑ Black, Lucy (2 February 2022). "App Developers Support Open App Markets Act". www.i-programmer.info. Retrieved 2022-03-27.
  15. ↑ Krishan, Nihal (April 11, 2022). "National security bigwigs split over bills targeting Amazon, Apple, and Google". Washington Examiner. Retrieved 2022-05-03.
  16. ↑ Miller, Andrew Mark (2022-02-01). "Chinese human rights activists back bill to crack down on Big Tech, China app market control". FOXBusiness. Retrieved 2022-03-14.
  17. ↑ "Chinese Human Rights Letter on Sideloading". United States Senate . January 31, 2022.
  18. ↑ Rodrigo, Chris Mills (2022-04-12). "Tim Cook cautions against antitrust legislation". The Hill . Retrieved 2022-04-15.
  19. ↑ Zilbermints, Regina (2022-02-03). "Senate panel advances bill targeting Apple, Google app store power". The Hill . Retrieved 2022-02-26.
  20. ↑ Zakrzewski, Cat (February 3, 2022). "Apple avoided the Washington techlash for years. Now it's at the center of the bull's eye". The Washington Post . Retrieved February 3, 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.