On Tuesday, Representative Kat Cammack (R-FL) unveiled a significant piece of legislation known as the App Store Freedom Act. This bill aims to transform the way large app store operators, such as Apple, manage their platforms by allowing users to install third-party app stores and designate them as defaults. The primary goal of this bill is to “promote competition and protect consumers and developers in the mobile app marketplace,” as outlined in the press release released on the same day.
While the App Store Freedom Act does not explicitly name Apple, it delineates the criteria for “large app store operators,” identifying them as platforms with over 100 million users in the United States. This definition encompasses major players like Google as well, indicating that the bill will address their practices as well. Among its many provisions, the bill mandates that these large app stores permit developers to utilize third-party payment systems, thereby fostering a more competitive environment.
The proposed legislation includes several critical measures designed to enhance fairness in the app marketplace. It requires that both Apple and Google provide developers with “equal access to interfaces, features, and development tools without cost or discrimination.” Furthermore, the bill stipulates that users should have the ability to remove or hide pre-installed apps, which is a step towards giving consumers more control over their devices.
Violations of the App Store Freedom Act would lead to penalties enforced by the Federal Trade Commission, alongside civil penalties that could reach up to $1 million for each infraction. This framework is intended to ensure compliance and accountability among the largest app store operators in the U.S.
The introduction of this bill comes in the wake of similar legislative efforts in the European Union, which have already compelled Apple to permit users to download third-party app stores and alter their default applications. Recently, Apple began allowing developers to link to external payment options, a shift prompted by the ruling in the Epic v. Apple case. Google has also adjusted its practices following the EU’s regulations, such as implementing a new browser choice screen during the initial device setup.
In the press release, Cammack emphasized the impact of dominant app stores on consumer choice: “Dominant app stores have controlled customer data and forced consumers to use the marketplaces’ own merchant services, instead of the native, in-app offerings provided by the applications and developers themselves.” She continued to highlight that these practices lead to inflated prices and limited choices for consumers, while also creating anti-competitive conditions for developers that hinder innovation.
The App Store Freedom Act represents a significant step towards reshaping the mobile app landscape, aiming to foster competition and enhance consumer rights. As the bill progresses, it will be crucial to monitor its implications for both consumers and developers in an increasingly digital world.
