Illustration: Sarah Grillo/Axios
In 2022, Big Tech antitrust was having a huge moment in Congress. Lawmakers were on the verge of passing bills that would change the way the biggest tech companies operate — until the effort fizzled out.
The big picture: For tech companies whose business models live and die by the whims of the Apple App Store or Google Play Store, the fight is far from over.
- "It's a conversation that is really about the future of the Internet," April Boyd, vice president of global government affairs and public policy at Spotify, told Axios in an interview.
- "The world cannot afford to have one company, Apple, decide what innovation and business online look like."
Driving the news: The generative AI explosion happened late last year, just as it was becoming clear that the American Innovation and Choice Online Act and the Open App Markets Act would fail to make it to a full Senate vote.
- Pro-tech groups and other insiders said the bills lacked the votes to pass the full Senate. Others, including civil society and pro-antitrust groups, blamed Senate Majority Leader Chuck Schumer, saying he refused to let them go to a vote.
- Both bills had cleared the Senate Judiciary Committee, with OAMA sailing through on a 20–2 vote.
What they're saying: "We're definitely very interested in the Open App Markets Act; last year there was a lot of bipartisan momentum for it, and we continue to see bipartisan momentum," Boyd said.
- Spotify is talking to lawmakers around the world about "the impact to consumers of [Apple's] practices and how we want to be able to communicate with our users directly in the app," she said. "We want to be able to bring more innovative products to market in better ways."
State of play: Boyd said Spotify has been focused on past supporters of OAMA in the Senate (it was originally introduced by Sens. Marsha Blackburn, Richard Blumenthal and Amy Klobuchar, and hasn't yet been reintroduced in 2023) along with members who may want to support it this year.
- Spotify CEO Daniel Ek made the rounds in the House this year, meeting groups including the Problem Solver Caucus, Boyd said.
- Blumenthal spokesperson Karolina Wasiniewska told Axios that tech and antitrust are still a priority for the senator and that work continues on the bill.
- Rick VanMeter, executive director of the Coalition for App Fairness, told Axios: "The Open App Markets Act is our top priority in the U.S. We're working every day, talking with members and staff on the need for the bill so that when it's reintroduced they understand why it's needed."
By the numbers: Despite a quieter conversation than in 2022, lobbying dollars are still flowing on app store bills, with Apple's spend significantly bigger than its smaller counterparts'.
- Apple has spent $5 million lobbying Congress so far in 2023, per federal disclosures, with the OAMA listed as a lobbying issue "in anticipation of [reintroduction] in the current Congress."
- Spotify has spent $600,000 so far this year, including on OAMA.
- Online dating service company Match Group, which supports the bill, spent $780,000 lobbying in the first two quarters of 2023.
- Epic Games, which has been embroiled in a court battle with Apple over App Store policies, spent $300,000 lobbying so far this year.
The other side: One of Spotify's major complaints about App Store rules is the inability to let customers buy audiobooks from within its app.
- An Apple spokesperson said it rejected Spotify's attempt to add audiobook purchases to its app last year for "not following the guidelines regarding including explicit in-app communications to direct users outside the app to make digital purchases."
- Relations with the Google Play Store haven't been as icy for Spotify: In March 2022, the two companies entered a multiyear agreement enabling customers to choose to pay within the Spotify app with its own payment system or to use Google Play's billing.
Meanwhile, those hoping to push forward the debate in the U.S. are watching Europe and the U.K. closely as they move ahead with their own app store regulations.
- VanMeter said the introduction this year of the U.K.'s Digital Markets, Competition and Consumers bill, which would open up mobile app stores and allow in-app payments, was promising.
- In Europe, the Digital Markets Act, which will require Google and Apple to open up their app stores, will soon go into full effect.
- VanMeter said his group is advocating for strong implementation and enforcement of the law because the two companies, designated as "gatekeepers," are likely to attempt circumvention tactics to avoid compliance.
What we're watching: The deadline for DMA compliance is in March 2024. How that goes will be telling for other app store regulatory efforts.
- And app store issues may also reach the Supreme Court. Both Epic Games and Apple have asked the high court to weigh in on their battle over in-app purchasing.
