The App Economy

Mobile applications, also known as “apps”, are a highly innovative and are an expanding sector of the economy, so policy makers are keen to maximise their innovative potential. Mobile platform markets are fiercely competitive, as highlighted by the recent rise and decline of platforms such as Blackberry, and governments are rightfully allowing market mechanisms to play out with minimal government intervention. However, as the app economy matures, there are increasing calls for transparency on how data is collected and used by apps. Leading mobile platform providers have recently taken steps to improve transparency on how apps access personal data but more can be done to inform users and give them the ability to limit access. This paper provides an overview of the app economy and identifies emerging policy issues related to competition, consumer protection and skills development.