The Arizona House of Representatives introduced a bill that could require Apple to allow alternative payment methods on the App Store. Apple had been lobbying against this bill, but it passed 31-29 on Wednesday, and it could have important consequences for iOS and the App Store.
While the Border reports, the legislation comes as an amendment to Arizona’s existing HB2005, and would prevent Apple and Google from forcing developers to use their own payment system.
The change is aimed at App Stores that exceed 1 million downloads and says that those stores cannot require that “a developer domiciled in this state uses a certain in-app payment system as the exclusive method of adding a user’s payments”.
Theoretically, the project could pave the way for developers to use third-party payment systems on the App Store. This would allow developers to avoid Apple’s 15% to 30% cut in transactions and in-app purchases.
The bill’s approval is already receiving praise from the Coalition for App Fairness, which helped draft the bill.
“Today, Arizona has set a milestone and has become the first state in the country to promote a digital market that is free and fair,” said Coalition for App Fairness, the industry group comprised of Epic, the parent company of the Tinder Match Group and Spotify, which is responsible for helping to draft the bill.
“Coalition for App Fairness is pleased to see HB 2005 approved by the House, which will encourage business innovation in Arizona and protect consumer choice. Although it is a cause for celebration, it is only the first step towards achieving a truly level playing field for everyone ”, continues the statement. “We look forward to working with the Arizona State Senate to move forward with a solution that takes advantage of this momentum to provide consumer freedom, reduce costs and increase developers’ ability to thrive and innovate.”
Apple did not comment specifically on this Arizona bill, but a report from the Protocol Last week, he explained that the company has been lobbying against the bill. In addition to using its own lobbyist, Rod Diridon, Apple also hired Kirk Adams, the former chief of staff to Arizona governor Doug Ducey and spokesman for the Arizona House of Representatives.
From here, the bill must pass the Arizona Senate, with a Republican majority, and then arrive at Ducey’s desk. The chances of that happening remain unclear, but this Arizona bill went beyond a similar bill that failed in North Dakota.
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