Arizona Bill That Would Let Developers Avoid Apple's In-App Purchase Rules Scrapped After Intense Lobbying

[MacRumors]

Arizona's proposed state bill "HB2005", that would provide developers with an alternative to Google and Apple's in-app purchase options by allowing developers to use their own payment solutions within apps, appears to have been abandoned after intense lobbying (via The Verge).

The bill was advanced through the Arizona House Committee and the Arizona House of Representatives, before it was set to be voted upon by the state Senate. The Senate chose to pull the bill "at the last minute" after a sudden loss of support.

Arizona is due to conclude its congressional session next month with no plans to hear HB2005 again. The bill's sponsors told The Verge that "its fate is effectively sealed for the rest of the year."

The primary goal of the bill was to allow developers to bypass Apple and Google's 30 percent commission on in-app purchases, while pushing Apple to allow entire alternative app stores on iOS and making it illegal for big tech companies to act against developers for attempting to bypass app store policies.

Apple has described such legislation as having the potential to "destroy the iPhone as you know it" by opening it up to security risks and undermining the revenue that supports the App Store's infrastructure.

Last month, Apple successfully fought back against a similar bill in North Dakota, which would have paved the way for third-party app store options.

Like the North Dakota bill, the Arizona bill was backed by the Coalition for App Fairness, a group that includes companies like Epic Games, Spotify, Basecamp, and Tile, all of which have had significant issues with Apple's ‌App Store‌ rules. There is currently a similar bill in Minnesota that Apple is also battling against.

Congressional members in Arizona have now said that lobbying from big tech companies had a significant effect on the bill's chances of success immediately before it went up for a vote.

State Representative Regina Cobb claims that Apple and Google "hired almost every lobbyist in town," which caused Senate members who had previously agreed to support the bill to hesitate. "We thought we had the votes before we went to the committee yesterday, and then we heard that the votes weren't there and they weren't going to take the time to put it up," she explained. Commerce Committee Chair J.D. Mesnard similarly told The American Prospect:

I polled the committee members and there just wasn't enough support for it. A number of members were conflicted on it, others were just opposed. There was some support for it, but it definitely was coming up short.

The Coalition for App Fairness has said that it will continue the fight in spite of the two defeats of meaningful legislation that would change Apple and Google's control over their platforms.

Article Link: Arizona Bill That Would Let Developers Avoid Apple's In-App Purchase Rules Scrapped After Intense Lobbying

 

[jav6454]

In all honesty, yes the App Store is a lucrative business, but it has served as a good portal.

Assuming I were ever given the choice between the App Store or XYZ-store, I'd pick Apple's App Store. I value my privacy, and tight control. Yes, there is a chance devs have to fork over a 15% or 30% commission, but nothing is free. Developer tools require an input.

My $0.02

 

[Mescagnus]

AAPL price will appreciate this development

 

[1258186]

America has the best politicians money can buy.

 

[The Cappy]

Something also worth reporting: “Arizona Bill That Would Let Developers Avoid Apple's In-App Purchase Rules Created After Intense Lobbying”

 

[1258186]

This issue should be decided in the US Congress not state by state.

 

[The Cappy]

America has the best politicians money can buy.

You’ve never traveled then

 

[The Cappy]

This issue should be decided in the US Congress not state by state.

Maybe. But the constitution says otherwise

 

[cdarlington1]

I can’t wait for the day that I can go to Best Buy and use a computer station or cash register set up in the store (by Sony) to buy a Sony Product being sold by Best Buy but bypassing the markup Best Buy have on the product. It’s gonna be great. SMH.

 

[Dwalls90]

Lobbying destroys US politics, but at the same time I don't agree with the argument.

 

[mtneer]

Usually I would be mad at hearing something undone by shady lobbying.

But in this case, the lobbying benefits Apple, so I am torn on my feelings./s

 

[Onelifenofear]

It's really simple. Allow third party stores. Completely limit their API links into the system. basically WebApps.

Personally. I think Apple has a complete right to run the only App Store. partly because of Security but mostly because they invented the hardware and software.

It's like someone demanding to be allowed open up a market stall inside of a Mall for free.

30% is nothing ( actually 15% now for smaller devs ) when I was doing development in the old CD/DVD I'd be lucky to take home 30% after all the Marketing, DVD Printing, Postage, storage. third party cuts ( which were 30-40% alone)

 

[DanTheMan827]

I can’t wait for the day that I can go to Best Buy and use a computer station or cash register set up in the store (by Sony) to buy a Sony Product being sold by Best Buy but bypassing the markup Best Buy have on the product. It’s gonna be great. SMH.

That's why the North Dakota bill was better, that would have just let you build your own store and sell whatever you wanted in it, but the way things are right now it'd be like Best Buy saying you can't build another store and that you have to sell through them exclusively.

 

[aesc80]

You’ve never traveled then

You missed the joke completely! Politicians ... money can buy ... lobbying?

It’s unfortunate that many of our policies (including the AZ bill) can be made go away or become permanent depending on who puts more money on their side of the seesaw.

 

[DanTheMan827]

It's really simple. Allow third party stores. Completely limit their API links into the system. basically WebApps.

Personally. I think Apple has a complete right to run the only App Store. partly because of Security but mostly because they invented the hardware and software.

It's like someone demanding to be allowed open up a market stall inside of a Mall for free.

30% is nothing ( actually 15% now for smaller devs ) when I was doing development in the old CD/DVD I'd be lucky to take home 30% after all the Marketing, DVD Printing, Postage, storage. third party cuts ( which were 30-40% alone)

I agree on third party stores and direct distribution, but definitely don't limit the API access any more than that available on the App Store... at that point why not just use web apps?

The whole point of the App Store over web apps is that you have more access to APIs, partly because Apple doesn't follow web standards.

 

[Krizoitz]

This issue should be decided in the US Congress not state by state.

No, it should be decided by consumers making the choice between Apple which offers one option and Android which offers the other.

 

[McG2k1]

I can’t wait for the day that I can go to Best Buy and use a computer station or cash register set up in the store (by Sony) to buy a Sony Product being sold by Best Buy but bypassing the markup Best Buy have on the product. It’s gonna be great. SMH.

Wildly inaccurate metaphor.

 

[Scottsoapbox]

I can’t wait for the day that I can go to Best Buy and use a computer station or cash register set up in the store (by Sony) to buy a Sony Product being sold by Best Buy but bypassing the markup Best Buy have on the product. It’s gonna be great. SMH.

I can't wait for more people to understand logical fallacies.

 

[Krizoitz]

That's why the North Dakota bill was better, that would have just let you build your own store and sell whatever you wanted in it, but the way things are right now it'd be like Best Buy saying you can't build another store and that you have to sell through them exclusively.

Epic et al are free to build their own App Store, on Android or on their own phone OS.

 

[subi257]

That would completely upend the entire business world.....

 

[swingerofbirch]

I don't understand Apple's argument. Are they trying to say destroying the iPhone as we know it is a bad thing? That sounds like a positive development.

Edit:
Wow. Never seen so many disagreements.

Allow me to expound.

Apple was at its most productive and most risk-taking when it was nearly losing everything.

It was creating entirely new operating systems. It was creating new products not based on a singular ecosystem.

Today, Apple is an extraordinarily careful company, which is probably why it trades like a blue chip rather than a tech company.

Their products today are a lot like the offerings at Taco Bell. It may seem like a lot of products, but they all have the same ingredients, and they're not amazing.

I don't think Apple will change with middling software quality etc unless something forces them to change and nothing has because they have so much money and inertia. That's why as a long-term Apple fan (going way, way back), the idea of something external forcing a change on Apple as we know it and having to see them respond to it and actually be nimble and take a risk would be a good thing.

 

[BuffaloTF]

Maybe. But the constitution says otherwise

Correct. The commerce clause says the Feds control interstate commerce... which this is. So it’s an effort in futility at a state level and the likelihood the feds ever take it up are slim-to-none.

 

[now i see it]

Lobbying = bribing.
Intense lobbying = intense bribing.
Thise who've got the money shape the laws

 

[richpjr]

Lobbying = bribing.
Intense lobbying = intense bribing.

That really does sum things up well.

Apple will continue to fight this to protect their cash cow, but at some point I expect that the lobbying will fail (in one or more States in the US or another country and then spreading) and other app stores will be forced upon them.

 

[citysnaps]

Good news!