Op-Ed Bryson Smith: A bipartisan solution to protecting the Tar Heel Tech Hub
By Bryson Smith - Chairman of the Rutherford County Republican Party
The North Carolina economy is second to none for small businesses, entrepreneurship, and innovation. Growing up and proudly calling the Tar Heel state home, I have witnessed the rapid expansion of our tech industry. Tech companies, large and small, and ambitious app developers have flocked from across the country to Charlotte and Raleigh, helping secure North Carolina as one of the top states for business.
As the tech industry continues to bolster our state’s economy, we owe these companies every opportunity to succeed and flourish in the digital marketplace. This can be done by backing sound public policy, ensuring a fair digital marketplace, and eliminating burdensome practices implemented by dominant tech platforms.
Unfortunately, many companies and developers in North Carolina face anti-competitive practices from app store gatekeepers and are forced to abide by their overreaching rules. There are many examples of how companies, like Apple, use their marketplace dominance to favor their own products and services while burying competition. One of the most harmful tactics the tech giant employs is the 30 percent fee through its in-app payment system, which threatens innovation, stifles competition, and leads to higher costs for app developers and North Carolina businesses. This transaction fee is higher than any other industry. In addition to this arcane fee, app developers are prohibited from offering alternative payment systems, forcing them to lose a large portion of their profits.
Growing up on a fifth-generation farm in Golden Valley and working for my family’s concrete business, I understand the importance of investing in your work product for future success. I know firsthand that if we had 30 percent of our revenue taken, it would hinder us from growing and exploring future opportunities to expand our business. Competition is critical for any business to thrive and survive. A solution to address these anti-competitive practices is currently being debated in the halls of Congress called the Open App Markets Act.
The Open App Markets Act is a common-sense proposal being championed by Republicans and Democrats in both the U.S. House and Senate. This legislation would prevent anti-competitive tactics like preventing app stores from forcing the use of specific in-app payment systems, prohibiting self-preferencing of one's products and services, and allowing for more communication between developers and their customers. In other words, this legislation prevents tech's most prominent gatekeepers from issuing tactics that only benefit them and hurt the developer looking to grow and thrive. The Open App Markets Act is precisely what the North Carolina tech industry needs.
North Carolinians are known for our entrepreneurial spirit and hard work ethic. The time to back the Tar Heel tech industry is now, by passing the Open App Markets Act in Congress. I urge our Congressional delegation to support this proposal that promotes a free, fair, and more competitive app marketplace. Let's make North Carolina a forever home for our growing tech hubs and hard-working developers.
