The Dominance of Apple iOS and Google Android in Mobile App Ecosystem
Over the past decade, a global consensus has formed around two key issues regarding mobile app ecosystems. Firstly, Apple iOS and Google Android have amassed significant and persistent market power, enabling them to extract monopolistic rents from consumers and business users through often anticompetitive and abusive practices. Secondly, traditional enforcement of laws against abuse of dominant position and monopoly has been too slow and uncertain to deter these megacorporations, which possess more resources and power than many countries and governments.
Legislative Efforts Across the Globe
Beyond existing competition law, which has allowed significant antitrust lawsuits in the US, Europe, Brazil, and other regions, lawmakers worldwide have been working on new initiatives. Various jurisdictions are either enacting or studying laws aimed at curbing the power and abuses of tech giants.
The Need for Action in the United States
In 2022, there was bipartisan support for the Open App Market Act in the United States, which made significant progress through the Senate Judiciary Committee with 20 favorable votes against two. However, partisan priorities in the Senate prevented it from being brought to a full vote; now, the need for such legislation is even more apparent. American consumers and businesses continue to suffer from abusive practices by “guardians” of the digital world, who extract excessive rents and fees, crush competition and business models, and exert undue influence over new apps and technologies.
The Importance of Open Competition
Open competition is crucial for independent developers and innovators to create businesses, provide employment, and benefit consumers. Countries that succeed in this area will be the next magnets for digital innovation investment.
Historical Context and Opportunities
In the past, Silicon Valley advocated for the application of antitrust laws against Microsoft, which then controlled effective access to the internet. The US Department of Justice took charge, and its effective enforcement allowed today’s well-known tech companies to thrive. Would companies like Apple and Google have prospered, or even survived, if Microsoft had controlled 30% of their revenues or engaged in unfair competition with its personal computer products? Or would they have followed Netscape’s path?
Today, we face a similar situation. Apple and Google control the platforms (mobile devices) that are often the most frequent—and sometimes the only—channel for consumers to access internet services and information. The potential for a new wave of independent innovation, investment, and business growth comparable to the past two decades depends on our ability to address market power issues.
The Opportunity for the United States
The opportunity available to American developers, businesses, and consumers is undeniable. Just as Silicon Valley experienced immense growth due to the US’s antimonopolistic leadership against Microsoft in the early 2000s, countries leading the next decade will attract innovative companies willing to invest and grow. The alternative is allowing two of humanity’s largest and most powerful corporations to control our digital lives indefinitely, not for the sake of innovation and entrepreneurship but to protect their financial interests.
The Role of the Open App Market Act
The Open App Market Act will give American consumers access to better prices and innovations from all corners of the digital economy. It will prevent mobile internet guardians from exploiting their power over devices to choose winners and losers and impose excessive fees on any company wishing to do business in their ecosystem. It will transform these mobile ecosystems into platforms for all innovators and entrepreneurs, not just those aligned with the current giant’s financial interests. And it will do so in timeframes that benefit today’s businesses and consumers, not those ten years from now.
Key Questions and Answers
- What is the main issue? The dominance of Apple and Google in mobile app ecosystems, which allows them to extract monopolistic rents and stifle competition.
- Why is legislative action necessary? Existing competition laws have been insufficient to curb the abuses of these tech giants, and timely legislative action is crucial for fostering innovation and fair competition.
- What will the Open App Market Act achieve? It will provide American consumers with better prices and innovations, prevent excessive fees, and ensure mobile ecosystems are open platforms for all innovators.
- Why is the US action important? Taking the lead in enacting new laws will prevent relying on uncertain judicial processes and ensure a more competitive digital landscape for businesses and consumers today.
Author: Gene Burrus is an antitrust lawyer.
Copyright: Project Syndicate, 1995 – 2025
www.project-syndicate.org
