PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2005
(Reference to printed bill)
Strike everything after the enacting clause and insert:
"Section 1. Title 18, Arizona Revised Statutes, is amended by adding chapter 7, to read:
CHAPTER 7
DIGITAL APPLICATION DISTRIBUTION PLATFORMS
ARTICLE 1. GENERAL PROVISIONS
18-701. Digital application distribution platforms; prohibitions; exception; attorney general; definitions
A. A provider of a digital application distribution platform for which cumulative downloads of software applications from the digital application distribution platform to Arizona users exceed one million downloads in the previous or current calendar year may not do any of the following:
1. Require A developer that is domiciled in this state to use a particular in-application payment system as the exclusive mode of accepting payments from a user to download a software application or purchase a digital or physical product or service through a software application.
2. Require exclusive use of a particular in-application payment system as the exclusive mode of accepting payments from Arizona users to download a software application or purchase a digital or physical product or service through a software application.
3. Retaliate against a developer that is domiciled in this state or an Arizona user for using an in-application payment system or digital application distribution platform that is not owned by, operated by or affiliated with the provider or retaliate against a developer for that use to distribute applications to or accept payments from Arizona users.
B. An agreement that violates this section is unenforceable and is deemed a violation of this section.
C. This section does not apply with respect to special-purpose digital application distribution platforms.
D. The attorney general shall receive complaints and investigate violations of this section and may bring an action in any court of competent jurisdiction to obtain legal or equitable relief on behalf of a person aggrieved by the violation.
E. For the purposes of this section:
1. "Arizona user" means a user whose most recent address shown in the records of a provider is located within this state.
2. "Developer" means a creator of software applications that are made available for download by users through a digital application distribution platform or other digital distribution platform.
3. "Digital application distribution platform":
(a) Means a digital distribution platform for applications and services that are provided to users on general-purpose hardware, including mobile phones, smartphones, tablets, personal computers and other GENERAL-PURPOSE devices that are connected to the internet.
(b) Includes a digital distribution platform that is provided or used for only certain types of devices, such as certain grades of computing device, devices that are made by only a particular manufacturer or devices that run a particular operating system.
4. "Domiciled in this state" means a person that conducts in this state the substantial portion of work to create or to maintain digital applications.
5. "In-application payment system" means an application, service or user interface that is used to process payments from users to developers for software applications and digital and physical products and services distributed through software applications.
6. "Provider" means a person that owns, operates, implements or maintains a digital application distribution platform or an in-application payment system.
7. "Special-purpose digital application distribution platform" means a digital distribution platform for single or specialized categories of applications, software and services that are provided to users on hardware intended primarily for specific purposes, including gaming consoles, music players and other special-purpose devices that are connected to the internet."