When I began my career as a marketing technologist, the tech landscape looked nothing like it does today. Over the years, the U.S. tech sector has grown in incredible ways, and at a breakneck pace. This economic growth has been a boon to communities across the country, including right here in Minnesota. I know first-hand just how rewarding the tech sector can be. As the CEO of a digital marketing firm based here in Minneapolis, I know the impact the digital economy has had on our state.
In a time of economic uncertainty, we need to promote policies that will create jobs and grow the economy. In the tech sector, I am greatly concerned about the anticompetitive practices of Apple and Google when it comes to their app stores.
Just look at the mobile application ecosystem as an example. Millions of Americans rely on their smartphones for a huge range of digital products and services. However, only two companies control the vast majority of all mobile devices: Apple and Google. Because these companies make the operating systems that almost all smartphones rely upon – iOS and Android – they are able to dominate the mobile app marketplace.
In practice, Apple and Google have become gatekeepers to the entire app economy. Their control over their operating systems – and by extension their respective app stores – allow them to enforce arbitrary policies and levy onerous fees on all developers seeking access to their app stores.
At our company, we provide our customers with new approaches to digital product development, and that includes building mobile products and experiences. Unfortunately, startups face the question of whether to even deal with Apple’s arbitrary App Store policies on a daily basis. What we have found is that Apple’s app review process has nothing to do with safety, security or the consumer. In reality, Apple’s app review process is a litmus test to see just how badly developers want access to the App Store. It’s not transparent, it’s inconsistent, and it’s incredibly costly for app developers. That combination can be a death sentence for a startup or a small business.
Building a minimum viable product – essentially a working beta version of an app – can cost up to $1 million dollars and take months to complete. If that version gets rejected, many times without explanation, it can be devastating to our clients. That means small businesses and non-profits right here in Minnesota live and die at the whims of Apple.
But hope isn’t lost. There is a solution to this problem, and it is legislation called the Open App Markets Act. This bipartisan bill will help open the app store ecosystem and introduce real competition to the marketplace.
Specifically, the Open App Markets Act will prevent app stores from forcing developers to use their in-app payment systems, ban self-preference schemes, allow developers to directly communicating with their customers, and allow customers to download apps directly from brands they know and trust.
Ultimately, these changes will benefit consumers the most. In any scenario where a few companies dominate a marketplace, consumers end up paying higher prices for inferior goods and services. That’s true of the mobile app ecosystem of today.
Ideologically, I’m opposed to federal regulations for the sake of regulation. But when it comes to the mobile app ecosystem, we clearly need our leaders to take action on the federal level to bolster competition, support small businesses, and protect consumers.
The choice is simple: take action so our tech sector can continue to thrive in Minnesota and across the country or sit on our hands and allow Big Tech companies in California to dominate the entire ecosystem.
Josh Kimber is the founder of Jola Marketing.
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