Arizona lawmakers only passed an antitrust bill in a vote of 31 to 29, which could have major implications for Apple, Google and, strange enough Fortnite.
Arizona House Bill HB2005 “It restricts the ability of certain digital application distribution platforms to require the use of an application-specific payment system.” (You can read the text of the invoice here.) This restriction applies to digital app distribution platforms such as iOS App Store and Google Play, and to any other distribution platform that exceeds one million downloads accumulated in a single calendar year.
It also prohibits distribution platforms from requiring Arizona-based application developers to use “an application-specific payment system as the sole method of accepting payments.” Therefore, Apple’s requirement that all purchases from the app 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 banned from retaliating against developers for using an in-app payment system other than their own. In the case of Epic Games, Apple and Google withdrew it Fortnite from his respective app stores because Epic added a direct payment method, which violated Apple and Google’s terms of service for developers.
“Bills like the one approved today by Arizona House would help address the range of damage gatekeepers like Apple and Google do to small businesses, entrepreneurs, consumers and local communities,” said Pat Garofalo, director of state and Local Policies of the American Economic Freedoms Project, in a press release today. “May the bill passed successfully show that there is a growing desire to curb the power of Big Tech companies that dominate key areas of trade.”
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Ultimately, HB2005 would allow Arizona-based developers to evade the “Apple Tax” or 30% commission (or 15% for developers who earn less than a million dollars a year) takes from every purchase from the app. How Gizmodo reported earlier, Fortnite generated $ 43.4 million in consumer spending on the App Store globally in July 2020. No doubt that number has dropped dramatically since Apple removed Fortnite from the App Store in August last year. California District Judge Yvonne Gonzalez Rogers ruled last October which was legally allowed to keep Apple Fortnite out of your App Store.
The next court date between Apple and Epic Games will be set for May 3, with Gonzalez Rogers presiding over the judge again. In accordance with MacRumors, the case will take place in person this time, with special adaptations for witnesses who cannot travel due to covid-19 restrictions. Before the trial, Apple CEO Tim Cook will have to do it sit for a 7-hourly arrangement.
HB2005 has yet to be approved by the Arizona Senate and signed by Gov. Doug Ducey before it becomes law, but that seems unlikely to happen before Apple and Epic go to trial in two months. Nor is it clear how exactly Arizona would enforce the law, which would almost certainly face a legal challenge if passed.