REPORT: Biden administration takes aim at market influence of Google and Apple App Stores

The Brandon Administration criticized Google and Apple as having undue influence over mobile app stores and called for Congress to pass legislation that would under cut their “gatekeeper” status, the latest sign of anti-Big Tech positioning by the White House.

The Commerce Department’s National Telecommunications and Information Administration released a report on Wednesday making the case for antitrust tech legislation. The report, titled “Competition in the Mobile Application Ecosystem,” examined the prominence of the Apple and Google app stores and noted their approaches to transparency, security, and data collection. The report then called on Congress to pass legislation to rein in their powers over the online market.

NTIA recommended that Congress increase resources to antitrust regulators like the Federal Trade Commission, that it take action to allow the use of third-party app stores, and that it limits or removes restrictions on sideloading, which is the downloading of apps from alternative app markets.

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NTIA administrator Alan Davidson told reporters, “We’re looking forward to seeing what legislation gets introduced on Capitol Hill…. Our hope is that this analysis can inform how people are thinking about these issues.”

Bharat Ramamurti, deputy director of the National Economic Council, said, “We have a real opportunity to make progress on tech and competition in this Congress. We’re highly committed to reform in this space and we will work closely with Congress to see whatever is possible.”

Linda Moore, the president of the tech lobbying group TechNet, said in a statement, “We agree with NTIA that the app market must be ‘robust, open, innovative and secure,’ but recommendations included in today’s report would cause serious harm to Americans’ data and privacy and have unintended consequences on our national security and global competitiveness.”

NTIA tweeted Wednesday, “NEW: We just released a report detailing how the current mobile app store model is harmful to consumers and developers, and recommended policy changes to fix it!”

NEW: We just released a report detailing how the current mobile app store model is harmful to consumers and developers, and recommended policy changes to fix it!

Here’s how https://t.co/wrobJk6Nxr

— NTIA (@NTIAgov) February 1, 2023

“Our report found that tech companies’ app store policies, such as Apple and Google, impede competition and have the potential to harm consumers by inflating prices and reducing innovation. We identified two key policy issues hindering a more competitive app ecosystem: 1. Consumers largely can’t get apps outside of the app store model 2. Apple and Google create hurdles for developers to compete for consumers by imposing technical limits”

We identified two key policy issues hindering a more competitive app ecosystem:

1. Consumers largely can’t get apps outside of the app store model

2. Apple and Google create hurdles for developers to compete for consumers by imposing technical limits

— NTIA (@NTIAgov) February 1, 2023

“We recommend several changes including: More consumer control over their devices. App store operators shouldn’t be able to ‘self-preference’ their apps. Operators should lift restrictions on alt. ways for consumers to download & install apps. Limits on in-app purchasing. New legislation & additional antitrust enforcement actions are likely necessary to boost competition in the app ecosystem. Enacting the measures identified will help open the app ecosystem to greater competition, innovation and potential benefits for users and developers.”

New legislation & additional antitrust enforcement actions are likely necessary to boost competition in the app ecosystem.

Enacting the measures identified will help open the app ecosystem to greater competition, innovation and potential benefits for users and developers.

— NTIA (@NTIAgov) February 1, 2023

A new Biden administration report describes Apple and Google as “gatekeepers” of mobile app stores.

It suggests legislation is needed to spur competition and give app makers and consumers more choices.https://t.co/5wRdLXiOEi

— Axios (@axios) February 1, 2023

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