Apple and Google created “harmful” app store model: US agency

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Apple and Google have faced numerous legal challenges for their respective app store policies over the years. The US government has now taken aim at them as well. Describing the duo as “gatekeepers” of mobile apps, the Department of Commerce’s National Telecommunications and Information Administration (NTIA) has suggested that Apple and Google have created a monopoly over app distribution on iOS and Android devices, respectively. The agency said the current model is “harmful” to consumers and developers.

According to NTIA, the existing mobile app ecosystem has two major issues that are coming in the way of a level playing field. Firstly, users have limited options when it comes to downloading apps. Apple and Google ship iOS and Android devices pre-installed with their respective app stores — App Store and Play Store.

These store apps can’t be removed and replaced with alternatives. This controlled model limits the avenues for innovators for reaching more consumers. The agency also noted the restrictions on sideloading of apps (iOS doesn’t allow sideloading at all).

The other issue that NTIA highlighted is the hurdles that Apple and Google create for developers. They impose technical limits on how apps can function. The agency also labeled the two vendors’ review processes as “slow and opaque”.

And since the controlled model makes users stick to the pre-installed app stores, developers can’t ditch them either. The Apple App Store and Google Play Store must be their first-choice app distribution platforms if they want to reach more users. Alternatives such as the Amazon Appstore and Samsung’s Galaxy Store aren’t “sufficiently viable options” to create robust competition.

NTIA isn’t overlooking the benefits of Apple and Google app stores

NTIA’s report doesn’t overlook the benefits of Apple and Google app stores. The agency particularly noted the security side of things. However, it said the cons easily outweigh the advantages of this model.

The duo can still preserve “appropriate latitude for privacy and security safeguards” while enabling a more competitive marketplace for mobile apps. It recommended several changes to make mobile app distribution a level playing field for all.

According to NTIA, users should have more control over their devices. They should be able to choose where they want to download apps from. If an alternative is available, they should be able to easily access it and set it as default over the pre-installed apps.

Users should also be able to hide or delete pre-installed apps and use alternatives. Developers should also be allowed to integrate third-party in-app payment systems in apps, something Google recently began in a limited capacity.

The agency says “new legislation and additional antitrust enforcement actions” may be required to boost competition in the mobile app marketplace. “NTIA’s recommendations, if enacted, would put fairer rules in place in the mobile app ecosystem, to the benefit of consumers and competition,” an official press release states. You can find the full report titled “Competition in the Mobile App Ecosystem” here (PDF).

2023-02-02 15:08:22