Arizona bill adds new antitrust challenges for Google and Apple

By Akshay Kedari  Date: 2021-03-09

Arizona bill adds new antitrust challenges for Google and Apple

Reportedly, a contentious Arizona bill addressing the fees that tech firms such as Google and Apple charge application developers is posing fresh antitrust issues for the beleaguered tech giants.

The bill, passed by the Arizona statehouse last week and now heading to the state senate, will require Google and Apple to enable app developers to process user payments inside their apps using their payment systems instead of Apple's or Google’s, cited sources with relevant information.

It is one of the multiple bills aimed at Apple and Google over developer fees that have been introduced in recent months, signaling a shift in the tide toward an industry that had largely defied regulations.

Janelle Wrigley, Director of the Antitrust Division at Thomas Reuters Practical Law, mentioned that this is the new development that has been a subject of debate in the battles of how technology should be regulated. She further added that if the bill is passed in Arizona, similar laws would rush through in other states as well.

As per reliable sources, Apple and Google also charge developers up to 30% for all app payments and in-app purchases, enabling the company to earn USD 15 billion a year from developer fees collected from its App Store.

Under Apple's new policy, if a user spends USD 5.00 on an app, Apple will take up to 30% of that, or USD 1.50. The new law in Arizona will allow the app to charge customers directly via other payment services that do not take such large payments.

Wrigley also said it was unclear which bill would pass first and which would have the most impact since legislation and litigation against Apple and Google were in flux across different states and countries.

Arizona's bill is the latest attempt to change the app store's structure, with several US states, including Hawaii, Georgia, New York, Illinois, Massachusetts, and Minnesota, as well as the United Kingdom, are considering similar legislation.

However, in February, the North Dakota state senate voted against a similar measure, sources confirmed.

Source Credit –

https://www.msn.com/en-gb/news/world/apple-and-google-face-new-antitrust-battle-over-arizona-app-store-bill/ar-BB1emiQ2

 

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Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

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