The letter highlight that regulatory scrutiny is not only unnecessary in all acquisition cases, but that many technology companies actively seek to be acquired.
Washington D.C., December 18th, 2020 — The Developers Alliance has joined with ACT | The App Association and Engine in sending a letter to Chairman Nadler, Ranking Member Jordan, Chairman Cicilline, and Ranking Member Sensenbrenner of the United States House Committee On The Judiciary expressing concern with the quality of the evidence, underlying presumptions, and conclusions in the majority staff report and recommendations on Competition in Digital Markets.
In their letter the organizations specifically note:
“The debate about competition in the technology sector must include the perspective of members of the startup ecosystem. While they are the supposed ‘beneficiaries’ of action in the competition policy space, a narrow focus on ‘big tech’ and policy proposals aimed only at perceived abuses by these companies—while ignoring their impacts on smaller firms—may actually harm competition in technology-driven sectors.”
The organizations also highlight the complexity of acquisitions, notably that not all acquisitions deserve regulatory scrutiny. This included data showcasing the desire for many small technology companies to be intentionally acquired as part of their initial business plan, by design.
“In a 2019 survey, 50 percent of startup executives said they expected the acquisition to be a “realistic long-term goal for [their] company,” while only 18 percent said initial public offering (IPO).”
The following statement can be attributed to the Developers Alliance.
“Developer-led startups are the backbone of the digital economy, thus it is more important now than ever to foster an environment that allows for robust competition in this space,” stated Sarah Richard, Developers Alliance U.S. Policy Manager. “Developers are serial entrepreneurs who often measure their success by their ability to sell their product and use that capital to move on and create the next best thing. Measures to blindly curb mergers and acquisitions in this space in the name of competition are tone-deaf to the needs of the developer community and harmful to growth in the technology sector,” Richard continues. “We look forward to working with members of Congress and the incoming Biden administration to ensure that any reforms impacting competition in the digital space lead to a thriving developer workforce and product market for generations to come.”
The full text of the letter can be found here.
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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.
Press Contact
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press@developersalliance.org
