What People are Saying: Antitrust Markups in the Senate

Washington, D.C. – As the Senate Judiciary Committee prepares to markup the Open App Markets Act, the Taxpayers Protection Alliance (TPA) continues to underscore the adverse effects of passing this piece of legislation.

Ahead of the markup, TPA Executive Director, Patrick Hedger, offered the following statement:

“This bill opens the door to harm privacy and security, two of the most important issues facing Americans.

“The Open App Markets Act (OAMA) fundamentally seeks to change antitrust laws and not only harm the safety and privacy of consumers and businesses, but puts a heavy limitation on American companies, while recklessly allowing foreign companies to prosper at their expense.

“Side-loading targets American consumers and allows apps to be downloaded without the proper vetting and security measures that device providers have prided themselves on for so many years. Allowing unvetted third parties, from petty cybercriminals to hostile state actors, access to the secure ecosystems created by American companies should be concerning for all.

There should be bi-partisan condemnation of this anti-consumer and anti-taxpayer bill.”

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WHAT TPA/TPAF IS SAYING:

Republicans abandon winning argument in mobile technology software debate

“OAMA would force companies such as Apple or Google to allow greater access to third-party software developers onto their devices. In much the same way that Title II regulations denied ISPs the needed flexibility to manage disparate internet traffic on their networks, OAMA would hamper the ability of smart device makers to keep potentially harmful apps or software off of the devices of customers.”– Patrick Hedger

Federal antitrust bill would grant ‘sweeping new powers’ to federal bureaucrats

“Republicans have long bemoaned the power of the bureaucracy to pick winners and losers in the economy – and rightly so. However, their desire to punish big tech companies for private censorship policies they believe disadvantage conservatives is blinding them to this danger. As odious and hypocritical as online censorship may be at times, these are private companies dictating their own operating procedures. It is not the place of the government to intervene, nor is there any indication that Khan’s FTC will use this power to stop at just tech companies.” – Dan Savickas & Patrick Hedger

App “Antitrust” bill attacks property rights

“In addition to imposing a version of net neutrality on mobile software, the legislation erodes the intellectual property (IP) protections that have been so pivotal to thriving digital markets. Before conservatives hop on this latest antitrust crusade, they should closely examine the many anti-IP provisions hiding in this deeply flawed legislation.”—Patrick Hedger

COALITION OF 12 FREE MARKET GROUPS:

TPA Led Coalition Opposes the Open App Markets Act

“At a time where our economy has been battered by a global pandemic, rising inflation, and supply chain shortages, there is no reason to go after one of our most vibrant sectors. The widespread access smartphones granted to the world mitigated many of the most severe challenges of the pandemic. Passing legislation like the Open App Markets Act would sow distrust in these devices by ensuring that potentially fraudulent actors can gain access to the personal data of millions. This is unacceptable.”—Taxpayers Protection Alliance, American Consumer Institute, Americans for a Strong Economy, Americans for Prosperity, Americans for Tax Reform, Center for Freedom and Prosperity, Competitive Enterprise Institute, Council for Citizens Against Government Waste, Digital Liberty, National Taxpayers Union, Open Competition Center, R Street Institute

WHAT OTHERS ARE SAYING:

Townhall: Child Safety at Risk With Current Antitrust Legislation

“In the end, these bills will create a wide-open door for app developers of all sorts to get their content on smart phone devices. Users will be left on their own to determine what is and is not safe, and that includes children online. Naturally, the likelihood of abuse skyrockets without the existing safeguards in place. While Congress looks for solutions to protect children online, they are pushing legislation that would increase those risks.”- Agatha Tomasik, Visiting Fellow with Stop Child Predators

Barron’s: New Antitrust Legislation Could Open the Door to Cybersecurity Problems

“Many of the applications that would be introduced by small- and medium-sized companies in an open system would lack the proprietary and advanced cybersecurity tools and solutions used by larger tech companies that have developed software and processes to identify and discover gaps that can leave data and user privacy insecure.” – Chuck Brooks, professor in the graduate Cyber Risk Management program at Georgetown University.

Washington Examiner: Big government’s tech war on the little guy

“Side-loading mandates would force closed ecosystems, such as Apple’s iOS, to allow access to third-party apps in their app stores. While politicians say that this builds in a backdoor for competition, it also allows applications from open ecosystems to bypass the strict technical and security requirements set by Apple. This revision to Apple’s policy opens the door to viruses and cyberattacks that it had all but eradicated.” – Grace Bydalek, Young Voices