ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session

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HB 2005: education; federal funds; technical correction

S/E: prohibitions; digital application distribution platforms

Sponsor:  Representative Cobb, LD 5

Committee on Appropriations

Summary of the Strike-Everything Amendment to HB 2005

Overview

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

History

There is no current law that addresses 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. Prohibits 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. States that an agreement which violates the prohibition is unenforceable. (Sec. 1)

3. Exempts digital distribution platforms used for specialized categories of applications that are provided to users of hardware intended for specific purposes (such as gaming consoles and music players) from the prohibitions. (Sec. 1)

4. Allows the Attorney General to bring an action on behalf of aggrieved parties and seek legal or equitable relief on their behalf. (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 2005

10. Initials TG/AF        Page 0 Appropriations

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