U.S. Rep introduces bill that would force Apple to allow third-party app stores

Congresswoman Kat Cammack:
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Today, Representative Katherine “Kat” Cammack [R-FL3] introduced the App Store Freedom Act, which seeks to promote competition and protect consumers and developers in the mobile app marketplace by prohibiting certain anticompetitive practices by dominant app store operators.
The bill supports interoperability and consumer choice by requiring large app store operators (100M+ U.S. users) to allow users to set third-party apps or app stores as default; install apps or app stores outside of the dominant platform; and remove or hide pre-installed apps. Additionally, the bill directs companies provide developers equal access to interfaces, features, and development tools without cost or discrimination.
“We must continue to hold Big Tech accountable and promote competition that allows all players to enter the field. For too long, consumers and developers have borne the brunt of anti-competitive practices on major app store marketplaces,” said Rep. Cammack. “Dominant app stores have controlled customer data and forced consumers to use the marketplaces’ own merchant services, instead of the native, in-app offerings provided by the applications and developers themselves. The results are higher prices and limited selections for consumers and anti-competitive practices for developers that have stifled innovation.”
The bill additionally prohibits app stores from forcing developers to use the company’s in-app payment system, imposing pricing parity requirements, and punishing developers for distributing their apps elsewhere.
“At its core, this bill seeks to promote a competitive marketplace for consumers and developers, ensuring U.S. mobile users can choose the applications, payment methods and platforms that are best for them without unduly forcing developers to comply or the pay the price—both literally and figuratively—for straying from the dominant marketplaces’ preferences,” Rep. Cammack added.
“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. We applaud Representative Kat Cammack for introducing common-sense rules of the road to permanently open up the app economy, unlock new opportunities for businesses and creators, and encourage even stronger tech innovation in the United States,” said Dustee Jenkins, Spotify Chief Public Affairs Officer.
“CAF applauds Congresswoman Cammack for introducing the App Store Freedom Act, legislation that will establish a fair and competitive mobile app marketplace. This is a vital step towards empowering developers and consumers by ensuring a level playing field for all participants in the app ecosystem,” shared the Coalition for App Fairness (CAF).

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MacDailyNews Take: Morgan Stanley analyst Erik Woodring in a note to clients this week, “[U]sing the DMA as the most recent case study, EU App Store revenue growth since DMA enforcement began has been ~25% Y/Y, similar to EU App Store growth from December 2020 to September 2021 (8), despite lower take rates, the ability to pay outside the App Store, and app sideloading (or, allowing 3rd party App Stores on iOS). All-in, App Store legal challenges are not new, and have not had a material impact on App Store growth rates…”
So, in a nutshell: Whatever. It’s coming anyway, one way or another. It might even help to sell more iPhones to Android holdouts in America who think they desperately need access to third-party app stores.

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