A new bill in the North Dakota Senate could force Apple to allow iPhone owners to sideload applications, and allow the use of alternative in-app payment systems.
The Bismarck Tribune (via The Verge) reports the bill would put in force three restrictions for “digital application distribution platforms.” Which clearly targets Apple and its various App Store rules.
“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,” said Sen. Kyle Davison, R-Fargo who on Tuesday introduced Senate Bill 2333 to the Senate Industry, Business and Labor Committee. Davidson was referring to a 30% fee imposed by Apple and Google on in-app purchases, which he said penalizes small app developers “by raising prices and limiting choices for consumers.”
The bill says that these platforms can’t:
- “Require a developer to use a digital application distribution platform or digital transaction platform as the exclusive mode of distributing a digital product.”
- “Require a developer to use an in-application payment system as the exclusive mode of accepting payment from a user to download a software application or purchase a digital or physical product through a software application.”
- “Retaliate against a developer for choosing to use an alternative application store or in-application payment system.”
Proponents of the bill said it addresses concerns of a monopoly by Apple and Google.
“They control so much about what consumers can get, what businesses can do, and it really puts these businesses in a tough position,” said Onsharp President and CEO Joe Sandin, of Fargo. Sandin owns a business that develops apps.
Apple has already testified against the bill. Privacy software manager Erik Neuenschwander told senators this combination of restrictions “threatens to destroy the iPhone as you know it” and “undermine the privacy, security, safety, and performance that’s built into iPhone by design.”
Neuenschwander added that the bill would “require” Apple to allow bad apps in the App Store, despite the fact that the company “works hard to keep” them out.
While this is a state-level bill and would only affect Apple’s App Store business in North Dakota, it could set a precedent, spurring other states to introduce similar legislation inside their borders.
The committee has not yet taken action on the bill. Chairman Sen. Jerry Klein, R-Fessenden, said “there’s still some mulling to be done.”
