Only Arizona lawmakers passed an antitrust bill in a 31-29 vote, which could have major implications for Apple, Google and, weird enough Fortnite.
Arizona House Bill HB2005 “Restrict the ability of certain digital application distribution platforms to request the use of an application-specific payment system.” (You can read the text of the invoice Here.) This restriction applies to digital application distribution platforms such as the iOS App Store and Google Play and any other distribution platform that exceeds 1 million cumulative downloads in a single calendar year.
It also prohibits distribution platforms from requiring Arizona app developers to use “an in-app payment system as the sole method of accepting payments.” So Apple’s requirement that all in-app purchases go through its own payment processing mechanism will no longer apply to developers like Epic Games and others who want to offer their customers a direct payment option.
If the bill becomes state law, companies such as Apple and Google will also be barred from retaliating against developers for using an in-app payment system other than their own. In the case of Epic Games, Apple and Google eliminated Fortnite from Al lor respective application stores, because Epic added a direct payment method, which violated the terms and conditions of Apple and Google for developers.
“Invoices like the one approved today by Arizona would help address the range of damage that gateways such as Apple and Google have to small businesses, entrepreneurs, consumers and local communities,” said Pat Garofalo, Director of State Policy. and local to the American Economic Freedoms Project, a press release today. “The fact that the bill has been successfully passed is proof that there is a growing desire to restrict the power of Big Tech companies that dominate key areas of trade.”
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Finally, HB2005 would allow Arizona developers to evade the “Apple Tax” or the 30% commission (or 15% for developers earning less than $ 1 million a year) ia de every purchase in the app. As Gizmodo reported earlier, Fortnite generated $ 43.4 million in consumer spending on the App Store globally in July 2020. No doubt the number dropped dramatically after that Apple removed Fortnite from the App Store in August last year. California District Judge Yvonne Gonzalez Rogers ruled in October last year which Apple was legally allowed to keep Fortnite from App Store.
The next court case between Apple and Epic Games is set for May 3, and Gonzalez Rogers will be the judge again. Conformable MacRumors, the case is set to take place in person this time, with special adaptations being made for witnesses who cannot travel due to covid-19 restrictions. Before the trial, Apple CEO Tim Cook will have to wait for a 7-hourly disposition.
HB2005 has yet to be approved by the Arizona Senate and signed by Gov. Doug Ducey before it becomes law, but it seems unlikely that this will happen before Apple and Epic go to trial in two months. It is also unclear how Arizona would implement the law, which would certainly face a legal challenge if passed.