A Florida congresswoman has filed legislation she hopes will make it easier for smaller third-party app developers to make their products available on Apple’s App Store.
U.S. Rep. Kat Cammack, R-Florida, introduced the App Store Freedom Act. One of the measure’s biggest components would prevent Apple from forcing third-party app developers to use Apple’s in-app payment system. Additionally, the Coalition for a Competitive Mobile Experience (CCME) says the bill would make it easier for these app developers to interoperate with Apple’s software.
“For far too long, smartphone manufacturers have controlled the app market and limited consumer choice to their own benefit,” Brandon Kressin, executive director of the Coalition for a Competitive Mobile Experience, said in a statement. “The App Store Freedom Act, introduced today by Congresswoman Kat Cammack, is an important first step to invigorate competition in the smartphone ecosystem, producing more growth and innovation than ever before. We are excited to support this critical legislation to level the playing field and unlock countless opportunities that companies like Apple have kept from the tech economy in the U.S.”
Cammack expressed a similar sentiment.
“We must continue to hold Big Tech accountable and promote competition that allows all players to enter the field. For too long, consumers and developers have borne the brunt of anti-competitive practices on major app store marketplaces,” Cammack said in a news release. “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. The results are higher prices and limited selections for consumers and anti-competitive practices for developers that have stifled innovation.”
iPhones are now about 60% of American smartphones, and, unlike its competitors, Apple has engaged in especially anticompetitive behavior, according to the Coalition for a Competitive Mobile Experience.
Notably, Apple takes up to a 30% commission on all third-party app sales, including in-app purchases.
“This is a significant financial burden, ultimately passed on to consumers,” CCME says. “By forcing developers to give up a large portion of their revenue for services Apple doesn’t contribute to, the policy ultimately raises costs for consumers while stifling competition.”
Additionally, Apple often prevents third-party smart watches and other health trackers from working with its products, incentivizing the purchase of its Apple watches, CCME claims.
Other problems include Apple preventing users from sharing their contacts with apps made by third-party developers, preventing Spotify users from controlling their music volume using iPhone volume buttons, and preventing third-party payment apps and tap-to-pay technology in favor of Apple Wallet, then charging transaction fees.
Besides allowing third-party payment systems in apps, the proposal has several other components.
It would require smartphone manufacturers to give app developers the same access to hardware, operating systems, and interfaces they provide to apps created in-house; bar smartphone manufacturers from requiring apps to be made exclusively for their respective app store, so companies don’t have to create multiple versions of their apps; and prevent app stores from blocking developers from telling users what things cost and where they can go to buy them.
If the bill becomes law, it would levy civil penalties of up to $1 million for each violation.
