A new piece of legislation known as the App Store Freedom Act has been introduced in the United States House of Representatives, poised to significantly alter the mobile app marketplace. This act would necessitate that both Apple and Google support third-party app stores and enable users to designate them as default options.
The App Store Freedom Act, presented by Representative Kat Cammack (R-FL) on Tuesday, aims to “promote competition and protect consumers and developers” by addressing what it identifies as anti-competitive behaviour from dominant app store operators. As outlined in a press release from Cammack and coverage by The Verge, this bill targets platforms with over 100 million users in the United States, thus effectively focusing on Apple’s App Store and Google Play.
According to the proposed legislation, companies would be mandated to:
- Permit users to download and set third-party app stores as their defaults
- Allow the removal or hiding of pre-installed apps
- Enable developers to provide alternative in-app payment methods
- Grant developers equitable access to crucial system features and APIs without costs or discrimination
Failure to adhere to these regulations may lead to enforcement actions from the Federal Trade Commission (FTC) and potential civil fines of up to $1 million per infraction.
Cammack stated in the announcement, as reported by The Verge, “Dominant app stores have controlled customer data and forced consumers to use the marketplaces’ own merchant services, rather than the native, in-app offerings from applications and developers.” This, according to her, results in inflated prices and a restricted selection for consumers, while also promoting anti-competitive practices that stifle innovation for developers.
The provisions outlined in the bill appear to mirror elements found in the European Union’s Digital Markets Act (DMA), which has already led Apple to open its iOS platform. Earlier this year, Apple faced a €1.8 billion ($1.9 billion) fine for antitrust violations linked to music streaming applications. In April 2024, the first third-party app store is expected to be officially launched on iPhones in Europe.
The DMA has also required that Apple and other companies make previously restricted features, such as AirDrop, AirPlay, and automatic audio switching, available to developers by 2026.
In recent developments within the United States, courts have begun to push back against analogous restrictions. A ruling mandated Google to permit third-party app stores in late 2023, while a verdict in the Epic v. Apple case compelled Apple to allow developers to direct users to external payment systems. Apple has reportedly started complying with this ruling, as noted by The Verge.
Supporting the legislation, a spokesperson from Spotify remarked in Cammack’s press release: “The App Store Freedom Act could be a game-changer for American consumers by providing them with more choices and control over their devices than ever before. We commend Representative Kat Cammack for implementing common-sense regulations that aim to permanently open the app economy, creating new opportunities for businesses and creators while fostering stronger technological innovation in the United States.”