Major loss for Apple, win for Epic as Arizona bans forced preferred AppStore payment systems

by Surur
March 3, 2021

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The Coalition for App Fairness (CAF), consisting of Epic, Match Group (Tinder), and Spotify have scored a major victory in Arizona after the Arizona House of Representatives just passed a bill co-drafted by the coalition which bans platforms from forcing developers from using a preferred payment service.

The protection, which would apply to developers based in Arizona, would allow those developers to use their own or alternate payment service and not pay the 30% Apple Tax.

“Today, Arizona put a marker down and became the first state in the nation to advance a digital market that is free and fair,” said the Coalition for App Fairness (CAF).

The bill appears to be laser focussed on Apple and Google, and specifically excludes game consoles “and other special-purpose devices that are connected to the internet.”

It also bars companies like Apple and Google from retaliating against developers who chose alternate payment services.

The bill must still pass the state senate and then be signed by Arizona Gov. Doug Ducey.

“The Coalition for App Fairness is pleased to see the House passage of HB 2005, which will encourage business innovation in Arizona and protect consumer choice. While this is cause for celebration, it is only a first step toward achieving a truly level playing field for all,” noted the CAF.  “We look forward to working with the Arizona State Senate to move a solution forward that builds on this momentum to provide consumer freedom, lower costs, and increase developers’ ability to thrive and innovate.”

The CAF has taken their fight to a number of other states, including Georgia, Hawaii, and Minnesota, but recently failed in the North Dakota state senate, suggesting the coalition should not count their chickens yet.

The impact of the bill may however be far-reaching, both inside and outside Arizona, with BaseCamp suggesting they may move to Arizona to take advantage of the new law.

via The Verge

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