Competition in the Mobile Application Ecosystem

After broad outreach, and input that included more than 150 comments from a diverse array of stakeholders, NTIA identified two key policy issues hindering a more competitive app ecosystem: 1) Consumers largely can’t get apps outside of the app store model, controlled by Apple and Google. This means innovators have very limited avenues for reaching consumers. 2) Apple and Google create hurdles for developers to compete for consumers by imposing technical limits, such as restricting how apps can function or requiring developers to go through slow and opaque review processes. While the current app store policies do offer some benefits to consumers, including the potential for tighter security controls, NTIA that the costs far outweigh the benefits and that privacy and security protections can still be achieved in a more competitive environment. NTIA recommends several changes to improve the app ecosystem for users, including:

• Consumers should have more control over their devices. They should be able to choose their own apps as defaults, use alternative mobile app stores, and delete or hide pre-installed apps.
• App store operators should not be able to “self-preference” their apps in an anticompetitive manner. Operators should not be able to favor their own apps in how they appear in search results or discriminate against other apps that are similar to their own.
• Operators should lift restrictions on alternative ways for consumers to download and install apps. While still preserving appropriate latitude for privacy and security safeguards, legislative and regulatory measures should prohibit restrictions on sideloading, alternative app stores and web apps.
• Addressing limits on in-app purchasing options. This can be done by banning requirements that developers use the app store operators’ in-app payment system.