I’ll give you three guesses who’s involved. And the first two don’t count.
Arizona’s House of Representative just passed a proposed amendment to Bill HB2005 this Wednesday. And said amendment could have large-scale repercussions for Apple and Google.
The amendment in question, in less-leagal-terms, is intended to keep app store operators from forcing any developer based in the state to use a preferred payment system. In other words, Apple and Google’s system by which they take a 30% cut for sales on their stores would be no good in the State of Arizona, in regards to developers based in that state. The bill isn’t through yet, though; it needs to heat through the state senate, and then pass before Governor Doug Ducey.
To be more specific, the bill prohibit a developer whose store app exceeds 1 million downloads (i.e. all of them) from requiring:
“A DEVELOPER THAT IS DOMICILED IN THIS STATE TO USE A PARTICULAR IN-APPLICATION PAYMENT SYSTEM AS THE EXCLUSIVE MODE OF ACCEPTING PAYMENTS FROM A USER TO DOWNLOAD A SOFTWARE APPLICATION OR PURCHASE A DIGITAL OR PHYSICAL PRODUCT OR SERVICE THROUGH A SOFTWARE APPLICATION”.
The bill also protects users in Arizona from having to pay for apps using exclusive payments systems, though whether that means that this applies only to apps from developers in state or anywhere is currently unclear.
If you live in Arizona and are worried about your consoles, though, you needn’t be. the bill specifically exempts game consoles and other specific-purpose built devices connected to the internet from this amendment.
So, you might be wondering what exactly got a bill regarding such a thing into the process in a state known for its blistering heat and retirees. Well, my friend, you can than the Coalition for App Fairness (CAF), who made the following statements:
Today, Arizona put a marker down and became the first state in the nation to advance a digital market that is free and fair.
Coalition for App Fairness
The Coalition for App Fairness is pleased to see the House passage of HB 2005, which will encourage business innovation in Arizona and protect consumer choice. While this is cause for celebration, it is only a first step toward achieving a truly level playing field for all. We look forward to working with the Arizona State Senate to move a solution forward that builds on this momentum to provide consumer freedom, lower costs, and increase developers’ ability to thrive and innovate.
Coalition for App Fairness
Who is the Coalition for App Fairness, you ask? Well, it’s Spotify, Match Group (the parent company of Tinder), and…
Naturally, Apple and Google went and lobbied against it. Hard. According to Arizona State Rep. Regina Cobb (R), who is also the sponsor of the bill:
We went through a very difficult weekend where Apple and Google hired probably almost every lobbyist in town.
Arizona State Rep. Regina Cobb, via Protocol
Coincidentally, Cobb wrote an op-ed for the Arizona Capitol Times last month:
Apple and Google have a monopoly on how you download apps to your phone. Because of that, for any app that offers digital services like games or music, you have to pay through Apple or Google’s monopolistic payment processing system. What most people don’t know is that Apple and Google take a 30% cut because of their “app tax.”
Arizona State Rep. Regina Cobb, via Arizona Capitol Times
You have to use their system and their payment processor, and then they tax you for it. Small app developers have to absorb the cost and struggle to survive or pass the tax onto their consumers.
Let me be personally clear, here. This is a massive legal slapfight between several multi-billion dollar companies that all claim to be standing up for the little guy. It will be a miracle if, at the end of all this, actual startups can manage to get off the ground in whatever environment is left for them.
Source: The Verge
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