Arizona lawmakers net passed an anti-monopoly bill in a 31-29 vote, which has major implications for Apple, Google and oddly enough, Fortnite.
Arizona House HB2005 Bill “Limit the ability of certain digital application distribution platforms to require the use of a specific application payment system.” (You can read the text of the bill here.) This restriction applies to distribution platforms for digital applications, such as the iOS App Store and Google Play, and any other distribution platform that exceeds 1 million cumulative downloads in one calendar year.
It also prohibits distribution platforms from requiring Arizona-based app developers to use “a specific payment system in the application as the only way to accept payments.” Apple’s requirement that all in-app purchases go through its own payment processing mechanism therefore no longer applies to developers such as Epic Games and others who want to give their customers a direct payment option.
If the bill becomes state law, companies such as Apple and Google are also prohibited from retaliating for using a payment system other than their own. In the case of Epic Games, Apple and Google removed Fortnite of their respective app stores because Epic has added a direct payment method, which violates Apple and Google’s terms of service for developers.
“Bills like those approved by the Arizona House today could help address the range of damage gatekeepers like Apple and Google are doing to small businesses, businesses, consumers and local communities,” said Pat Garofalo, director of state – and local policy among the Americans, said. Economic Freedom Project, in a press release today. “The successful implementation of the bill is proof that there is a growing desire to curb the power of the Big Tech businesses that drive key areas of trade.”
G / O Media can get a commission
Finally, HB2005 will allow developers in Arizona to pay the “Apple Tax” or the 30% commission (or 15% for developers earning less than $ 1 million a year) take from every purchase in the app. As Gizmodo reported earlier, Fortnite generated $ 43.4 million in consumer spending worldwide in the App Store in July 2020. The number has undoubtedly decreased drastically Apple removed Fortnite from the App Store in August last year. District Judge Yvonne Gonzalez Rogers in California last October decided that Apple may legally hold Fortnite out sy App Store.
The next court date between Apple and Epic Games is set for May 3, with Gonzalez Rogers presiding as judge again. According to MacRumors, the case will take place in person this time, with special accommodation for witnesses who cannot travel due to the limitations of covid-19. Before the trial, Apple CEO Tim Cook will have to do it sit for a 7hour nature.
HB2005 has yet to be approved by the Arizona Senate and signed by the government Doug Ducey before it becomes law, and it seems unlikely that will happen before Apple and Epic stand trial in two months. It is also unclear how exactly Arizona would apply the law, which would almost certainly face a legal challenge if passed.