Topline
Several states are considering legislation agreed by a consortium of companies such as Fortnite-maker Epic Games and Match Group that would allow developers to avoid controversial Apple and Google app store fees, the latest legal violation in the ongoing battle between the tech giants and smaller companies.
The logo of the video game ‘Fortnite’ developed by Epic Games is on display at the Paris Games … [+]
Photo by Chesnot / Getty Images
Key facts
When users buy in-app, they have to use an Apple or Google payments processor, which gives a 15-30% cut of the transaction, movement critics describe as a countermeasure a competitor that helps maintain the monopoly and harm customers by forcing apps to raise prices to cover the tax.
Epic Games, Spotify, Match Group and several other smaller startups such as Tile, Basecamp and ProtonMail created a nonprofit last year called the Consortium for App Fairness, which has been taking away lobbying to force state lawyers to introduce bills that address an app store. monopolies and allows them to use their preferred payment processor. (The Consortium for App Fairness did not immediately respond to a request for comment from Forbes.)
According to Protocol tech news, a local lobbyist representing Match Group and the Coalition for App Fairness spoke to the lawyer who supported the Arizona bill, and a lobbyist for Epic Games and the Alliance for Fairness App draft legislation for the state of North Dakota. grandfather, according to the New York Times.
Bills have already been introduced in North Dakota, Arizona, Minnesota and Georgia over the past few months, and while the effort is in North Dakota – that would also have forced Apple app stores allow another – already failed, a bill addressing the issue has passed. Arizona House of Representatives this week.
The bills received early support from Republicans who are looking at their efforts as a way to restart in Big Tech, while Arizona Democrats questioned whether the state should intervene and argument the bill would benefit companies such as Epic Games and Match Group which are already racking up millions.
Pushback from Democrats in Arizona was an unlikely turnaround, as the Democrats are behind a similar bill in Minnesota, backed by progressive groups and technical critics such as Elizabeth Warren, which is at the forefront of the federal effort, backed by Democrats, for stricter anti – trust rules.
Key critics
While the state’s Republican has largely accepted it, libertatian groups, such as Americans with Koch’s support for success and the R Street Institute, say the bills make unnecessary orders on private companies . For their part, Apple and Google are strongly lobbying against any app store legislation. Erik Neuenschwander, Apple ‘s chief privacy engineer, said in evidence before the North Dakota State Assembly that allowing third – party payment processors is opening up Apple devices to rogues that could compromise privacy and security . Kyle Andeer, Apple’s chief compliance officer, told Arizona lawyers of the bill “telling Apple that they can’t use their own set of checks in the store we built. ”
Key background
The issue of app store fees got attention last year after Epic Games deliberately used their own payment system as a sort of complaint against Apple and Google, and as a result Fortnite was kicked out of the app. two app stores. Epic then filed a lawsuit against the two companies alleging that they had broken a law against trust. With both lawsuits pending, part of the argument against the bill from Arizona Democrats was based on the idea that states should not put pressure on the controversial lawsuit. “It is not the duty or duty of the state legislature to intervene in the middle of a lawsuit,” Democratic Representative Cesar Chavez said.
Amazing info
Both Apple and Google have held a team of lobbyists to oppose the Arizona bill. Apple even hired a former chief of staff to Arizona Gov. Doug Ducey and a spokesman for the Arizona House of Representatives to try to kill the bill, Protocol reported.
What do you look
Arizona’s bill, the furthest one, still has to pass the State Senate and be signed into Ducey’s law.