The Developers Alliance once again encourages Congress to engage with small software developers before passing laws that threaten their livelihood.
Washington D.C., March 1st, 2022 – The Developers Alliance has released a statement addressing the remarks made during today’s congressional House hearing on “Holding Big Tech Accountable: Legislation To Protect Online Users.” The hearing was held by the House Committee on Energy and Commerce Subcommittee on Consumer Protection and Commerce of the Committee on Energy and Commerce.
Key Facts
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The “Banning Surveillance Advertising Act of 2022” (H.R. 6416) threatens the monetization model that supports developers building free apps and services.
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Elevating the FTC to the role of Internet Regulator via the “Algorithmic Accountability Act of 2022” (H.R. 6580) or “Digital Services Oversight and Safety Act of 2022” (H.R. 6796) is a significant undertaking requiring broad stakeholder engagement.
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Developers encourage Congress to focus on bounded, real-world policy issues that would help both consumers and the U.S. digital industry, such as robust rules on privacy and cybersecurity.
The five bills discussed were:
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The Banning Surveillance Advertising Act of 2022 (H.R. 6416)
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The Algorithmic Accountability Act of 2022 (H.R. 6580)
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The Cooperation Among Police, Tech, and Users to Resist Exploitation Act (H.R. 6755)
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The Increasing Consumers’ Education on Law Enforcement Resources Act (H.R. 6786)
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The Digital Services Oversight and Safety Act of 2022 (H.R. 6796)
Of the five tech-focused bills, three have will a significant impact on the U.S. software developer community. The “Banning Surveillance Advertising Act of 2022” (H.R. 6416) seeks to ban services that enable personalized advertising — one of the fundamental monetization mechanisms for app and game startups. Without the ability to underwrite market entry, the bill would not only shift the digital economy away from advertising support and free-to-consumer services but would make it incrementally more difficult for new apps and games to emerge in the app marketplace. We encourage Congress to address any fundamental concerns over personal privacy by enacting a federal privacy law and enforcing existing FTC advertising laws on social media platforms rather than targeting the foundation of the free internet.
The bills that propose elevating the Federal Trade Commission to regulate the U.S. digital economy – the “Algorithmic Accountability Act of 2022” (H.R. 6580) and the “Digital Services Oversight and Safety Act of 2022” (H.R. 6796) – have profound implications for the country. The regulatory scope they envision is not a small adjustment to the FTC’s mandate, but a significant change that would fundamentally alter the agency’s focus and societal impact. We would encourage Congress to broaden the debate and increase stakeholder outreach as it embarks on such a sweeping change to our regulatory policy.
Bruce Gustafson, President & CEO of the Developers Alliance, made the following statement on the bills involved:
“America’s leadership in the digital economy is no longer something we can take for granted. Europe’s digital sovereignty strategy and China’s digital nationalism together pose existential threats to the free internet and the broad social and economic benefits the digital economy has brought to the world. Congress must decide whether the path forward is comprehensive regulation of the digital economy via an expert agency, or targeted intervention by lawmakers where fundamental issues like privacy, cybersecurity, or illegal content need to be addressed.
Focusing on policing personalized advertising, while ignoring the privacy issues that lie at the root of Congressional concern is poor policy. It directly harms digital startups by removing their ability to self-fund, upending the free internet service model that consumers enjoy. At the same time, bolting new responsibilities onto the side of the Federal Trade Commission risks muddying both the agency’s nascent and existing mandates. As always, our advice is to engage with stakeholders from across the digital economy – including the software developer community – before making fundamental changes to an ecosystem lawmakers do not completely understand.”
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About The Developers Alliance
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.
