The Arizona House of Representatives has carefully advanced a bill that could require Apple to allow alternative payment methods in the App Store. Apple worked against this bill, but it was passed in a 31-29 vote on Wednesday, and it could have major consequences for iOS and the App Store.
Like the Edge reports, the legislation comes as an amendment to the existing HB2005 in Arizona, and it would prevent Apple and Google from forcing developers to use a first-party payment system.
The amendment is aimed at App Stores that have more than 1 million downloads and says that the stores may not need a specific payment system from a developer residing in this state in the application as the exclusive way of payment of a user do not use.
Theoretically, the bill could pave the way for developers to use third-party payment systems in the App Store. This will allow developers to avoid Apple’s 15% to 30% reduction on transactions and in-app purchases.
The adoption of the bill has already received praise from the Coalition for App Fairness, which helped draft the bill.
“Today, Arizona has made a point and become the first state in the country to promote a free and fair digital market,” said the Coalition for App Fairness, the industry group comprised of Epic, the Tinder parent company Match Group and Spotify. who is responsible for drafting the bill.
‘The Coalition for App Fairness is pleased to see the HB 2005 House section, which will encourage business innovation in Arizona and protect consumer choice. “Although it is a cause for celebration, it is only a first step towards achieving a truly equal playing field for all,” the statement continued. “We look forward to working with the Arizona Senate to advance a solution that builds on this momentum to provide consumer freedom, lower costs, and increase developers’ ability to thrive and innovate.”
Apple did not specifically comment on this bill in Arizona, but a report from Protocol last week explained that the company was working against the bill. In addition to using its own lobbyist, Rod Diridon, Apple has also hired Kirk Adams, the former chief of staff to Arizona Gov. Doug Ducey and speaker of the Arizona House of Representatives.
From here, the bill must pass through the Republican Arizona Senate, then it will reach Ducey’s desk. The chances of that remain unclear, but this bill in Arizona has now made it further than a similar bill that failed in North Dakota.
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