This month, House and Senate lawmakers introduced the Open App Markets Act, a bill that, if enacted, will substantially change how Google and Apple run their app stores and mobile operating systems. The bill is one of many recent antitrust efforts, all of which target technology companies and attempt to dictate how private businesses should operate. And just like the rest of these misguided efforts to radically expand antitrust law and enforcement, it spells bad news for consumers.
The bill’s sponsors take aim at how “covered companies” like Apple and Google run their app stores, especially their requirements for in-app payment systems. Their standard 30% commission is admittedly high and burdensome, especially for smaller and independent software developers. In an effort to avoid scrutiny, Apple reduced its cut to 15% for developers who earn less than $1 million in annual sales per year from all their apps. A step in the right direction, though not enough to appease lawmakers.
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