Arizona is working on legislation that would prevent app stores from enforcing certain payment systems. Under the legislation, it will be ensured that Arizona-based developers are not exposed to a 30% cut in Google Play and Apple App Store.
Could be the first step to a bigger move
As you know, mobile game and app developers need to pay a 30% commission to app stores. The bill prepared in Arizona to prevent this situation has passed two important steps.
Approved by the House Appropriations Committee last week, the amendment will be officially enacted if passed by the state senate and governor. This will make Arizonian developers no longer required to use the payment systems of stores.
The passage of the law is an important step in finding a solution to this issue worldwide. These payments can be a serious problem, especially for small developers. User acquisition costs are also increasing day by day, and it is becoming more difficult to earn income from games.
The bill suggests that digital stores with more than 1 million downloads last year should not be able to force Arizona-based developers to “use a particular in-application payments system as the exclusive mode of accretive payments from a user”. As mentioned, game consoles will not be included in this group.
It is currently unclear whether this will apply to apps developed outside of the state. Still, app stores will not be able to retaliate against developers covered by the law for not using their payment systems. As a matter of fact, last year Apple and Google banned Epic, which brought its own payment system. If the law is passed, such a situation will no longer occur.
Many companies have been involved since the war between Epic and app stores began. Epic fhas co-founded the Coalition For App Fairness, with dozens of companies such as Spotify, and Match.
“Today, Arizona put a marker down and became the first state in the nation to advance a digital market that is free and fair,” said the coalition.
“The Coalition for App Fairness is pleased to see the House passage of HB 2005, which will encourage business innovation in Arizona and protect consumer choice. While this is cause for celebration, it is only a first step toward achieving a truly level playing field for all.”
“We look forward to working with the Arizona State Senate to move a solution forward that builds on this momentum to provide consumer freedom, lower costs, and increase developers’ ability to thrive and innovate.”
Opposition to the Arizona bill argues that state legislatures should not interfere with ongoing legal disputes between companies such as Epic, Apple and Google.
