The Developers Alliance response to the market study on online platforms and digital advertising details the critical role advertising revenue plays in supporting small businesses and innovative applications.
Washington D.C., Brussels, London, September 11th, 2019 — Washington D.C. On July 3rd, the UK Competition and Markets Authority (CMA) launched a market study into the online platform and digital advertising market in the UK, inviting relevant parties to submit comments. The Developers Alliance responded to the invitation by submitting formal comments which were published by the CMA today.
The Developers Alliance comments focus on the role a stable advertising ecosystem plays in providing a revenue stream to small developers and early investment for innovative products without a proven market. Additionally, the comments detailed some potential negative ramifications of the pre-defined interventions noted by the CMA, with the proposed process risking the appearance of a politically-driven and flawed regulatory approach.
“Consumers appreciate the innovative products and services built by software developers,” noted Karina Stan, Director of EU Policy and Head of Brussels Office. “Advertising has enabled a whole new way to invest in new products and consumer services, thus providing to the consumers a variety of popular applications for free (or at low costs). Advertising is the key for monetizing such applications.”
They detail, for developers, the ability to fund the initial launch of innovative services through advertising has become an embedded part of the startup business model. Elaborating how, like newspapers, radio, and television before them, advertising sales are what allows software developers to offer consumer services at little or no cost.
“Without the ability to fund development through advertising, far fewer new apps and services will make it to market,” said Bruce Gustafson, CEO of the Developers Alliance. “It’s unfortunate that the very sector best positioned to elevate the EU’s competitive market position is the one that stands to suffer the most when the ecosystem they rely on comes under attack.”
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The Developers Alliance is the world’s leading advocate for software developers and the companies invested in their success. Alliance members include industry leaders in consumer, enterprise, industrial, and emerging software development, and a global network of more than 70,000 developers.
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