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REFERENCE TITLE: prohibitions; digital application distribution platforms |
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State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session 2022
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HB 2662 |
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Introduced by Representatives Cobb: Biasiucci, Kaiser, Wilmeth
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AN ACT
AMENDING title 18, Arizona Revised Statutes, by adding chapter 7; relating to digital application distribution platforms.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
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 IN-APPLICATION PAYMENT SYSTEMs that are owned or controlled by the digital application distribution platform 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 in-application payment systems that are owned or controlled by the digital application distribution platform for 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 for offering or AN ARIZONA USER FOR USING AN IN-APPLICATION PAYMENT SYSTEM THAT IS NOT OWNED BY, OPERATED BY OR AFFILIATED WITH THE PROVIDER OR RETALIATE AGAINST A DEVELOPER FOR offering an in-application payment system that is not owned by, operated by or affiliated with the provider to accept payments from arizona users. SUCH PROHIBITED ACTS INCLUDE DEMOTING THE SEARCH RANKINGS OF THE DEVELOPER, SHIFTING FEES TOWARD THE DEVELOPER OR SLOWING DOWN THE APPLICATION REVIEW AND APPROVAL TIMELINES.
B. This section does not apply with respect to special-purpose digital application distribution platforms.
C. The attorney general may 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.
D. Any person aggrieved by a violation of this section may commence a civil action on the person's own behalf in any court of competent jurisdiction to obtain legal or equitable relief, including reasonable attorney fees and costs.
E. an ACTION MAY not BE COMMENCED UNDER SUBSECTION D OF THIS SECTION until SIXTY DAYS AFTER THE PLAINTIFF HAS GIVEN NOTICE OF THE ALLEGED VIOLATION TO THE ATTORNEY GENERAL. An ACTION MAY not BE COMMENCED UNDER SUBSECTION D OF THIS SECTION IF THE ATTORNEY GENERAL HAS COMMENCED AND IS DILIGENTLY PROSECUTING AN ACTION IN COURT ARISING FROM THE SAME ALLEGED VIOLATION.
F. 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 MOBILE PHONES, SMARTPHONES OR OTHER MOBILE COMPUTING DEVICES AND THE DEVICEs RUN A MOBILE OPERATING SYSTEM that is OWNED OR CONTROLLED BY THE PROVIDER OF THE DIGITAL DISTRIBUTION PLATFORM.
(b) Includes a digital distribution platform that is provided or used for only certain types of devices, such as certain grades of computing devices, 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 established primarily for use by public safety agencies or 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.