Op Ed: North Carolina App Developers Deserve Better

Here in the Tar Heel state, our economy is booming, taxes are low, and job talent is moving from all over the country to our great state. In the last 12 years, we have been ranked as a top-five state for business, and the city of Raleigh is known as the tech industry's best-kept secret. Due to the pro-growth policies we have put in place, North Carolina is one of the fastest-growing economies.  

Across the country, tech hubs are hotspots for developers, and these developers are choosing North Carolina as home. Unfortunately, many of our state’s developers face anti-competitive practices from app store gatekeepers and are forced to abide by their rules or face exclusion from the only app stores available.  When one company dominates the marketplace, it hinders developers' ability to innovate and invest in their products.

One of the most harmful anti-competitive tactics North Carolina developers face on the app store is a commission fee of up to 30 percent. Companies like Apple, force independent developers to use their in-app payment systems and then take a cut off the top. A 30 percent commission fee is unsustainable for any small business and hinders further innovating and investing in their product.  

As a businessman, I know firsthand that having 30 percent of my revenue taken would hinder growing and exploring future opportunities. Competition is critical for any business to thrive and survive, and as a state senator in North Carolina, my colleagues and I have a responsibility to support the tech community that now calls the Tar Heel state home. As a state senator, I know that common-sense legislation can create real change. Today, Congress has an opportunity to help our local tech companies through a bipartisan, bicameral piece of legislation called the Open App Markets Act.  

This legislation would stop anti-competitive tactics and level the playing field for developers by preventing app stores from forcing in-app payment systems, banning self-preferencing schemes, and breaking down the barriers preventing developers from directly communicating with their customers. More competition for local tech companies would also directly benefit North Carolina consumers. Consumers would have more choices for their devices and access to lower prices for digital services and subscriptions. To simply put it, this legislation stops monopolistic practices which stifle innovation and would create a fair digital marketplace which is exactly what the Tar Heel state needs to become the premier tech destination and attract more talent from across the country. 

The Open App Markets Act is a vital piece of legislation which would promote competition and ensure that local tech companies in North Carolina have a level playing field to operate in. This legislation would result in more talent moving to the Tar Heel state which would grow our economy and help solidify our status as the premier destination for tech entrepreneurship and investment. 

State Senator Jim Perry is a lifelong businessman and current Majority Whip of the North Carolina Senate