Epic, the maker of Fortnite, is closer to winning its battle against Apple and Google.
CNET
Amid the legal battles of Apple and Google with Fifteen days Epic Games manufacturer about the future of how app stores work, Arizona lawmakers proposed proposed rules on Wednesday that could change the debate and change the way applications work on iPhones and Android devices.
The state bill, if passed and passed into law, would require app store operators like Apple and Google to loosen their rules on payment processing, an increasingly controversial topic between tech giants and big business. developers making popular applications on their platforms.
Instead, Arizona-based companies with more than 1 million downloads per year would be allowed to choose alternative payment systems when users sign up for a subscription or buy a digital item as a new look for their character or more puzzle attempts. Currently, Apple and Google require developers to use their payment processing services, which charge commissions of up to 30%, a practice that Epic has argued to be monopolistic in twin lawsuits filed against companies.
Lawmakers are increasingly examining how Apple and Google operate their respective app stores.
Angela Lang / CNET
The new law, which would only apply to Arizona-based companies, has yet to pass the Arizona state Senate and be signed by Governor Doug Ducey before it becomes law.
The Coalition for App Fairness, which supports the project, said in a statement that it “would encourage business innovation in Arizona and protect consumer choice” if approved.
Epic did not immediately respond to a request for comment. Apple and Google declined to comment. Apple pointed to earlier testimonials, while Google pointed to its earlier statements about how its products help businesses.
Apple argued that the commissions help pay for further development and operation of its iOS application and software stores that power the iPhone and iPad.
Whether the law goes into effect or not, it is the most recent way for states to enter political and legal debates in the technology industry. Instead of waiting for federal law or new regulations, states are considering or passing a growing set of rules on how the technology industry deals with privacy, environmental issues and now also finances.
Illinois has one of the most stringent facial recognition laws in the country and last month it contributed to one of the largest collective action settlements in history, with a $ 650 million payment from Facebook. The state of Washington in 2018 was the first in the country to pass network neutrality laws, a few months after the Federal Communications Commission took them down. Massachusetts voters in 2020 passed one of the nation’s first repair law laws, forcing automakers to give customers access to vehicle data. And now Arizona is also considering your account.
For large technology companies, this represents yet another way that they face increasing efforts to control them. After decades of operating with little supervision, technology companies are being forced to defend their actions – or lack thereof – around how they manage their social networks, control access to their devices or deal with competition. And in many cases, these growing demands for technology regulation are something both major parties in the country agree to. President Joe Biden this week even expressed support for unionizing efforts at an Amazon warehouse in Alabama.
“Companies that were once awkward and oppressed beginners who defied the status quo have become the kinds of monopolies we last saw in the era of oil barons and railroad magnates,” wrote the United States House Judiciary Committee in a hard-hitting report 449 pages last year. “While these companies have provided clear benefits to society, the dominance of Amazon, Apple, Facebook and Google has come at a price.”
It is also a sign that, regardless of the legal battles that technology companies are waging over antitrust complaints, the problems themselves will not go away when the lawsuits are over.
In Arizona, the bill still has obstacles to negotiate before it becomes law, but lawmakers have made it clear that more regulation is likely.
“The status quo is failing for Arizonans, forcing us to pay inflated prices. They are bankrupt entrepreneurs, who are being forced to jump over obstacles simply to bring products to their customers. In fact, the only people who seem to benefit from this configuration are the monopolies – Apple and Google, “wrote Arizona House representatives. Regina Cobb and Leo Biasiucci in an opinion article published by the Arizona Capitol Times last month. “While DC is in your hands, we are now taking action to challenge Big Tech’s monopoly.”