North Dakota Senate debates breaking Apple's App Store monopoly
A new bill being debated in North Dakota could see Apple forced to allow sideloading of apps, and not require developers to use the App Store in-app purchasing mechanism.
Apple's App Store and Google Play
North Dakota's Senate legislature has been discussing a proposed bill that would shake up Apple's App Store and the Google Play Store by removing their alleged monopolies. What is proposed in Senate Bill No. 2333, is specifically to do with developers being forced to sell through App Stores.
The bill does not mention Apple or Google by name. Instead, it seeks to be applied to any "digital application distribution platform" for general computing, like an iPhone, which earns over $10 million annually from sales in North Dakota. There are carve-outs for "special-purpose digial application distribution platforms" like a game console or dedicated music player, which exclude stores for devices like the various Xbox or PlayStation consoles from the provisions of the bill.
The bill mandates that general purpose platforms can not require a developer to use their app store. Furthermore, platforms also may not "require a developer to use an in-application payment system as the exclusive mode of accepting payment."
Finally, they may not "retaliate against a developer for choosing to use an alternative application store or in-application payment system."
According to The Bismark Tribune, the bill was introduced by Senator Kyle Davison (R-Fargo), who claimed that App Store fees were unfair.
"The purpose of the bill is to level the playing field for app developers in North Dakota and protect customers from devastating, monopolistic fees imposed by big tech companies," he said. "[This penalizes smaller developers] by raising prices and limiting choices for consumers."
During the hearing, Apple's chief privacy engineer Erik Neuenschwander said that passing the bill would threaten "to destroy iPhone as you know it." He said that these proposed changes would "undermine the privacy, security, safety, and performance that's built into iPhone by design."
"Simply put, we work hard to keep bad apps out of the App Store; [this bill] could require us to let them in," he continued.
North Dakota has an app of its own on Apple's App Store, the contact tracing coronavirus Care19. It has been criticised, however, for contradicting its own privacy policy and sharing information with other companies.
Based on the committee votes so far, it does not appear that the bill will pass in its present form.
Apple's App Store and Google Play
North Dakota's Senate legislature has been discussing a proposed bill that would shake up Apple's App Store and the Google Play Store by removing their alleged monopolies. What is proposed in Senate Bill No. 2333, is specifically to do with developers being forced to sell through App Stores.
The bill does not mention Apple or Google by name. Instead, it seeks to be applied to any "digital application distribution platform" for general computing, like an iPhone, which earns over $10 million annually from sales in North Dakota. There are carve-outs for "special-purpose digial application distribution platforms" like a game console or dedicated music player, which exclude stores for devices like the various Xbox or PlayStation consoles from the provisions of the bill.
The bill mandates that general purpose platforms can not require a developer to use their app store. Furthermore, platforms also may not "require a developer to use an in-application payment system as the exclusive mode of accepting payment."
Finally, they may not "retaliate against a developer for choosing to use an alternative application store or in-application payment system."
According to The Bismark Tribune, the bill was introduced by Senator Kyle Davison (R-Fargo), who claimed that App Store fees were unfair.
"The purpose of the bill is to level the playing field for app developers in North Dakota and protect customers from devastating, monopolistic fees imposed by big tech companies," he said. "[This penalizes smaller developers] by raising prices and limiting choices for consumers."
During the hearing, Apple's chief privacy engineer Erik Neuenschwander said that passing the bill would threaten "to destroy iPhone as you know it." He said that these proposed changes would "undermine the privacy, security, safety, and performance that's built into iPhone by design."
"Simply put, we work hard to keep bad apps out of the App Store; [this bill] could require us to let them in," he continued.
North Dakota has an app of its own on Apple's App Store, the contact tracing coronavirus Care19. It has been criticised, however, for contradicting its own privacy policy and sharing information with other companies.
Based on the committee votes so far, it does not appear that the bill will pass in its present form.
Comments
It’s probably coming and it will hard to have sympathy for iOS users who get hosed by a bad app on their iPhone or iPad.
Would someone please think of the children!!!
It would be enlightening to know who is behind this legislative push. As Deepthroat would have said, “Follow the money.”
I agree with the first part. I'm not sure a state can get away with it. As for the second point, I think what we see coming out of several "red" states right now probably is less about money and more about a reaction to what's going on with Big Tech. Florida is pushing an anti-censorship bill, for example. Their constituents are pissed (in my view, rightfully) and they want to make it look like they are doing something.
You could see more of an impact by closing any of the top 20 grossing physical Apple Stores. Because I don’t think Apple will undergo such a major restructuring (which I won’t argue the pros or cons) for such a tiny market.
It’s time some people get inconvenienced on some things they take for granted. Perhaps this way, they stop voting for stupid...
You are not California. If you mess with us, we'll just drop service in your state.
Cordially,
Apple
I would compare this to North Dakota passing a law demanding that GM sell all its cars with a steering wheel on both sides of the car. GM would simply say no, and would stop selling all cars in ND, and then ND would have to decide wether to arrest tourists and visitors for driving GM cars that have a steering wheel only on the driver's side.
I hope and pray ND goes through with this insanity so we can see the consequences, and the world knows what Apple will do in any jurisdiction that does this. I'm sure Apple is happy it's ND and not NY that's trying this first.
I've been making this argument on this forum for at least a year. I'd love to see my predictions come true.
(Macbeth)
That's why the Play store is much less profitable. People are too cheap to spend a buck on a app and Android allows side-loading... so they just find a place to download it and go.
Given that there are zero Apple stores there, the state doesn't seem to have option to enforce this. Sure, they could ban third-party sales of iPhones within the state, but isn't that in itself anticompetitive?
On the positive side, the secondary market for used Nokia 8210s might surge.