Arizona lawmakers simply passed an anti-monopoly law by 31-29 votes, which could have major consequences for Apple, Google and, oddly enough, Fortnite
Arizona House Bill HB2005 “Limits the ability of certain digital application distribution platforms to require the use of a specific in-application payment system.” (You can read the text of the bill here This limitation applies to digital application distribution platforms such as the iOS App Store and Google Play, and any other distribution platform with more than 1 million cumulative downloads in one calendar year.
It also prohibits distribution platforms from requiring Arizona app developers to use “a specific in-application payment system as the sole method of accepting payments.” So Apple’s requirement that all in-app purchases should go through its own payment processing mechanism would no longer apply to developers like Epic Games and others who want to give their customers a direct payment option.
If the bill becomes state law, companies like Apple and Google would also be excluded from retaliation against developers for using an in-app payment system other than their own. In the case of Epic Games, Apple and Google have been removed Fortnite of their respective app stores because Epic added a direct payment method, which violated Apple’s and Google’s developer terms of service.
“Bills such as those approved today by the Arizona House would help address the array of damage gatekeepers such as Apple and Google are causing to small businesses, entrepreneurs, consumers and local communities,” said Pat Garofalo, director of State and Local Policy at the American Economic Liberties Project, in a press release today“The bill’s successful passing is proof that there is a growing desire to contain the power of the Big Tech companies that hold sway over key areas of trade.”
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Ultimately, HB2005 would allow developers in Arizona to pay the ‘Apple Tax’ or the 30% commission (or 15% for developers making less than $ 1 million per year) takes from any in-app purchase. Like Gizmodo has previously reported Fortnite generated $ 43.4 million in App Store consumer spend worldwide in July 2020Undoubtedly, that number has fallen dramatically since then Apple removed Fortnite from the App Store last August. Judge Yvonne Gonzalez Rogers in California reigned last October that Apple was legally allowed to keep Fortnite from the App Store
The next court date between Apple and Epic Games is set for May 3, with Gonzalez Rogers set to act as judge again. According to MacRumors, this time the case will be in person, with special adjustments for witnesses who are unable to travel due to covid-19 restrictions. Prior to the trial, Apple CEO Tim Cook will have to do that sit in front of a 7-hour disposition
However, HB2005 has yet to be passed by the Arizona Senate and signed by Governor Doug Ducey before it becomes law, and it seems unlikely that will happen before Apple and Epic go to court in two months. It’s also unclear exactly how Arizona would enforce the law, which would almost certainly face a legal challenge if passed.