US House Bill Seeks to Open Apple and Google App Stores

A U.S. House bill takes aim at Apple and Google’s control over the mobile app ecosystem, seeking to curb practices lawmakers say restrict competition and inflate prices for consumers and developers.

Rep. Kat Cammack, R-Fla., introduced the App Store Freedom Act, a bill that would bar dominant app store operators from engaging in a range of business practices critics say are anticompetitive.

“We have two predominantly large marketplaces through both Google and Apple, and at this point in time, you have a lot of apps that for many different reasons are finding trouble being hosted,” Cammack told Fox News.

“There’s a lot of anticompetitive practices that have really dominated this space for years. This bill seeks to rectify those wrongs.”

What the Bill Proposes

The bill applies to companies controlling both an app store and its underlying operating system with more than 100 million U.S. users.

The bill would require Apple and Google to allow users to set third-party apps or app stores as default, sideload apps without using the official store, and remove or hide preinstalled apps.

It also mandates that developers get equal access to critical system tools and interfaces without cost and on equivalent terms as the tech platforms’ own apps.

At the same time, the bill prohibits app store operators from forcing developers to use their in-app payment systems or requiring pricing parity across platforms. Companies would also be barred from retaliating against developers who distribute their apps through alternative means.

The Coalition for App Fairness, a nonprofit advocacy group formed by developers including Epic Games, Spotify and Match Group, endorsed the legislation.

“This is a vital step towards empowering developers and consumers by ensuring a level playing field for all participants in the app ecosystem,” said Gene Burrus, global policy counsel for the coalition, in a statement.

Increased Scrutiny

The bill’s introduction comes at a time of regulatory scrutiny for Apple. In April, the European Commission fined Apple for violations of the EU’s Digital Markets Act related to App Store restrictions.

In the same month, a U.S. federal district court found Apple in contempt of a prior order requiring the company to allow developers to direct users to external websites for purchases. The ruling was for a lawsuit brought by Epic Games after Apple removed its account for letting players pay outside of Apple’s ecosystem.

The App Store Freedom Act closely aligns with the Open App Markets Act, a bipartisan bill that aimed to impose similar restrictions on dominant app store platforms. But the bill failed to become law.

The new bill would be enforced by the Federal Trade Commission, with violations treated as unfair or deceptive practices under existing consumer protection statutes. State attorneys general would be empowered to pursue legal action on behalf of consumers.

“The App Store Freedom Act could be a game-changer for American consumers by giving them more choice and control over their devices than ever before,” said Dustee Jenkins, Spotify’s chief public affairs officer, in a statement.

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