Ahead of Tuesday's Senate Judiciary Subcommittee hearing titled, "Big Fixes for Big Tech," ACT | The App Association has issued a letter addressed to Chair Lee and Ranking Member Klobuchar. The letter came alongside a statement from Morgan Reed, President of ACT | The App Association.
"Given the witness list of the Senate Judiciary Committee Hearing on ‘Big Fixes for Big Tech,’ it is shaping up to be an airing of grievances on April Fool’s Day rather than shining a light on the real costs of sweeping antitrust remedies in dynamic digital markets," Reed stated.
He added, "While it is appropriate for the Senate Judiciary Committee to conduct oversight on how enforcement agencies under its jurisdiction are applying antitrust law in digital markets, the committee’s planned witnesses and potential focus on new rules and regulation fails to accurately represent the perspectives and priorities of American small business innovators." Reed emphasizes that legislators and enforcers should look beyond the complaints of the loudest and most resourceful competitors, considering the costs imposed on small businesses in the app economy.
"Our members, which include small tech entrepreneurs and developers, know that policies modeled after Europe are designed to curtail and restrict the beneficial offerings of curated online marketplaces (COMs)," the statement continues. Reed argues that frameworks like the Digital Markets Act (DMA) benefit a select group of Big Tech competitors while stifling competition and diminishing service offerings for App Association members.
ACT | The App Association expressed commitment to highlighting the potential negative impact of the DMA and European-style regulations on competition and innovation in the U.S. The association represents small and medium-sized technology companies globally, working to foster a policy environment conducive to innovation and growth.
For further details, interested parties are encouraged to visit www.actonline.org.