The Arizona House of Representatives voted on Wednesday to pass a bill requiring Apple and Google’s app stores to allow developers to avoid fees and use their own payment processing systems.
The bill would allow app developers to avoid fees ranging from 15% to 30%. The law, if passed, would apply to companies and users in Arizona but could influence measures in other states and at the national level regarding unfair or anti-competitive behavior within app stores.
The 31-29 vote to pass the bill is a setback for the tech giants, but the legislation still must pass the Arizona Senate and the governor’s veto before it can become law. Republicans, who pushed the bill, control the House, Senate, and governor’s offices in the state.
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“They have a monopoly on the market right now,” Republican State Rep. Regina Cobb told reporters, regarding Apple and Google. “If [legislators] are not going to take a stand at the federal level, we have to do it at the state level.”
Opponents within the Arizona Legislature questioned if it would truly benefit consumers or if it would unfairly benefit some tech companies over others. Furthermore, some representatives raised concerns regarding whether app store fees are a federal issue and whether the bill could be challenged in federal court.
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Similar legislation to give app makers more power and lower fees is appearing in multiple states, including New York, Illinois, Massachusetts, Minnesota, Georgia, and Hawaii.
