ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

 

HB 2662: prohibitions; digital application distribution platforms

Sponsor: Representative Cobb, LD 5

Committee on Judiciary

Overview

Restricts the ability of certain digital application distribution platforms to require the use of a specific in-application payment system.

History

Currently, there is no law addressing this subject. As a result, many digital application distribution platforms, which distribute software and other applications to mobile phones, tablets and personal computers via the Internet, operate under their own terms and conditions.

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProhibits a provider of a digital application distribution platform whose cumulative downloads from Arizona users in a calendar year exceed 1,000,000 from:

a)   Requiring an Arizona-domiciled developer or Arizona user to use a specific in-application payment system as the sole method of accepting payments for either a software download or a digital or physical product; or

b)   Retaliating against an Arizona-domiciled developer or Arizona user for using an in-application payment system or digital application distribution platform not associated with the provider. (Sec. 1)

2.   Exempts from the prohibitions special-purpose digital distribution platforms. (Sec. 1)

3.   Allows the Attorney General to receive complaints, investigate and bring an action on behalf of aggrieved parties to seek legal or equitable relief on their behalf. (Sec. 1)

4.   Permits an aggrieved party to bring a civil action to seek legal or equitable relief if the Attorney General does not bring an action within 60 days after receiving notice from the aggrieved party. (Sec. 1)

5.   Defines Arizona user, developer, digital application distribution platform, domiciled in this state, in-application payment system, provider and special-purpose digital application distribution platform. (Sec. 1)

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9.                     HB 2662

10.  Initials LC/AF/ES  Page 0 Judiciary

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