According to the latest information, in the technologies world, the 30% commission charged by the two major software stores of Apple and Google (of which Apple’s commission is commonly known as “Apple tax”) has caused huge controversy and antitrust investigations, and is incurring more supervision.
On March 4, the Arizona House of Representatives passed a new bill with 31 votes to 29 votes. This bill requires software stores to allow third-party developers to use their own payment systems, thereby avoiding the 30% commissions of Google and Apple.
Apple opposes the Arizona bill. This vote is a setback for Apple and a victory for the “Software Fair Alliance”, an American industry organization that represents third-party mobile software developers who oppose Apple and Google’s rake.
However, there are still several obstacles to this bill becoming a formal law. First, the Arizona Senate needs to discuss the bill and vote on it next. In addition, Arizona Governor Doug Ducey has the power to veto the new law. If all procedures are passed and the bill becomes a formal law, the Arizona government will also face other issues, such as how Apple and Google will comply with the law and whether they will challenge it in court.
Just a few weeks ago, North Dakota also discussed a similar bill, and the state Senate voted to veto the bill.
Arizona legislation (code-named HB2005) stipulates that software stores with more than one million downloads each year must allow third-party software to provide payment options outside of the software store, thereby allowing developers to avoid 30% or 15% commissions. to make. This bill mainly applies to companies and consumers in Arizona.
Although the bill does not explicitly mention specific company names, the bill mainly targets two major software stores, Apple and Google. Among them, the Apple software store has more controversy in the industry because of its unique monopoly (there are countless software stores in the Android ecosystem). On Wednesday, the Arizona Senate spent more time discussing the bill around the Apple Software Store. In addition, in the legal provisions, game console software stores and music player stores are exceptions, that is, third-party game software cannot use its own payment system.
Parliamentarian attitude
Arizona Republican Representative Regina Cobb supports this legislation. He said that Google and Apple software stores currently have a monopoly on the market. In reality, very few people do not use Android or Apple phones.
However, some congressmen oppose the bill, believing that the legislative process is too hasty. In addition, the software store issue may fall into the scope of US federal legislation. If it conflicts with the US Constitution, the Arizona law may be challenged in the federal courts in the future.
Arizona Democrat Senator Diego Rodriguez said that Arizona has no interest in the interests of software stores. Congressmen should enact laws to protect consumer rights, but this new bill protects Development agencies are not harmed by other large technology companies.
Apple opposed
Apple opposes this new Arizona law. The company’s chief compliance officer, Kyle Andeer, said in a court hearing last week that the law is equivalent to “the government requires Apple to give away the software store for free.”
Andy said that this bill will allow large development organizations to enjoy the value of the Apple Software Store for free, but in fact, they sell digital goods in the Apple Software Store, and they have earned millions or even billions of dollars.
Personnel from Apple and Google have not yet commented on the results of the voting on Wednesday.
This new Arizona law is also the latest regulatory measure encountered by Apple’s software store. In the past few years, the Apple Store has become a target of public criticism. Third-party developers believe that Apple’s rules are too strict and the commission is too high. Some developers say that the Apple software store is unfair and hinders market competition.
This industry dispute has entered the “game arena” of state legislation. At present, the Georgia and Minnesota legislatures are also considering similar legislation.
Developer support
This new bill is supported by the “Software Fairness Alliance”, which includes companies such as Spotify, Match Group, and Epic Games (the owner of Fortnite). These companies have protested against the “Apple tax” in the past, demanding lower commissions, allowing developers to launch their own payment channels, or approve other software stores within the iOS ecosystem.
The head of the organization, Meghan DiMuzio (Meghan DiMuzio), said that the “Software Fairness Alliance” is very pleased to see the Arizona House of Representatives pass this bill, which will encourage enterprises in the state to innovate and protect consumer rights. Although this event is worth celebrating, it is only the first step in achieving fair competition.
Last year, Epic filed an antitrust lawsuit against Apple and Google. The lawsuit is currently ongoing, and the focus is also on the commission of the two major software stores. The company requires developers to provide their own payment channels to avoid commissions.
In October last year, the Judiciary Committee of the House of Representatives of the United States Congress published an antitrust investigation report accusing Apple of having monopoly power on iPhone software. Apple is using this influence to obtain disproportionate profits.
In addition, in 2019, the U.S. Supreme Court ruled against Apple in a lawsuit. This ruling may allow consumers to initiate lawsuits against Apple’s software store in the future, on the grounds that the monopoly has increased the price of software.
Various regulatory measures and rulings seem to have had an impact on the policies of the Apple Software Store. Last year, Apple introduced a new policy to quell the dissatisfaction of development agencies. If third-party development agencies earn less than $1 million in annual revenue from the Apple Store, Apple’s commission rate will be reduced from 30% to 15%.
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