Arizona House passes bill HB2005, which would force Apple and Google to let apps in its app stores use alternative payment methods; bill now heads to AZ Senate
not law yet, but the momentum here is real and growing. https://www.theverge.com/... Jack Nicas / @jacknicas : This matters because it would likely attract companies to Arizona to avoid Apple and Google's hefty fees. @DHH of Basecamp is already saying they'll move there if it passes. The bill needs just 16 senate votes and the governor's signature to become law. https://twitter.com/... Jack Nicas / @jacknicas : The Arizona House just passed a bill that would be very bad news for Apple and Google. It'd prevent them from forcing apps in the state to use their payment systems, meaning they could evade the tech giants' up to 30% commissions. https://www.theverge.com/... Nick Statt / @nickstatt : Pretty astounding outcome. Arizona House just advanced HB2005, the bill forcing Apple and Google to allow alternative payment systems. It's on its way to the state senate. https://www.theverge.com/... @dhh : Today's incredible win in the Arizona House for @recobbforazrep on her app store bill is the biggest win for tech antitrust in 20 years. https://www.theverge.com/... Nick Statt / @nickstatt : Basecamp co-founder & CTO (maker of the Hey email app) says HB2005 advancing in the AZ House has them fully considering relocating the business to Arizona. That would be wild. https://twitter.com/... @dhh : Yes, the bill still has to go through the senate, but with the incredible momentum and awareness that @recobbforazrep has built for this cause, I'd expect it to pass. And we want to be ready on day one to take full advantage. @dhh : We are going to prepare app updates for both Android and iOS that give Arizonans the right to signup for service using our normal payment processing setup. Then start the conversation with lawyers on what it'll take to relocate Basecamp to Arizona. This means everything. @dhh : Representatives are afraid that THE RICHEST COMPANIES IN THE WORLD would retaliate against nonprofits if they can't shake down other businesses?? This is madness. https://twitter.com/... @dhh : You can see why Apple is fighting tooth, nail, and claws to keep its tollbooth privileges in place. Taking a 30% cut of other people's business is both easier and less expensive than innovating new blockbuster products. AND IT SCALES! https://twitter.com/... @dhh : If Apple can't shake down businesses for a 30% cut to their monopoly platform, it's like... forcing them to... *checks notes*... accept Bitcoin? Don't know whether to laugh or cry. https://twitter.com/... Florian Mueller / @fosspatents : This may be the first public endorsement by an Arizona Democratic politician of HB2005, the #OpentheAppStore bill. Not surprised that an entrepreneur would find this “the right thing to do.” The current tyranny (meaning *either* major app store) is hostile to entrepreneurialism. https://twitter.com/...
The VergeNick Statt
Context & Ripple Effects
HB2005's House passage followed Apple's stepped-up Arizona lobbying against a proposal to loosen the payment rules of major app stores. It turned a state-level dispute over platform control into an imminent Senate test.
The later record shows the Senate skipped the scheduled vote and the sponsor said the measure would not receive a hearing that year. Even without changing Arizona's rules, the episode foreshadowed the federal Open App Markets Act debate over large app-store operators.
First-order effects
Apple and Google must now defend their in-app payment requirements before the Arizona Senate, while developers such as Basecamp gain a concrete legislative lever against those requirements.
The House vote does not alter payment processing yet: Senate approval and the governor's signature remain necessary before Arizona apps could use alternatives.
Second-order effects
Apple's Arizona lobbying becomes more consequential because it is aimed at a bill that has cleared one chamber; the subsequent skipped Senate vote shows that legislative procedure can halt the immediate threat.
The proposal puts app-store payment rules alongside broader U.S. competition policy, giving federal advocates a state example as they pursue rules for large app-store operators.
Third-order effects
The fight points toward app-store payment mandates becoming a recurring target of competition legislation, with platform operators contesting rules in legislatures as well as through product policy.
If more proposals follow Arizona's model, control over in-app transactions would shift from a uniform Apple-and-Google rulebook toward jurisdiction-specific requirements.
The trend: App-store payment control is becoming a legislative competition issue, with state proposals feeding a wider push to constrain platform gatekeepers.
“Bills like the one approved by the Arizona House today would help address the range of harms that gatekeepers like Apple and Google pose to small businesses, entrepreneurs, consumers and local communities.” @Pat_Garofalo on HB 2005 👇 https://www.economicliberties.us/ ...
Notably, this bill was opposed by Democrats in the state. It feels like GOP anti-big-tech sentiment has found a vector of attack that isn't the chaos of 230 reform, and it's app store fees.
Rep. Diego Rodriguez (D) says Arizona is stepping into a relationship negotiated between Apple and its developers. “This bill will prevent them from maximizing their private intellectual property.”
@dhh @DrAmishShah @KelliButlerAZ @MezaArizona I don't need any favors and don't take free meals. I am with you on this one because it is the right thing to do.
@matthewstoller @dhh Someone might explain to Democrats that an app dev-friendly law will lead to more developers moving to the Grand Canyon State, and typically most tech industry folks vote for Democrats.
This is awesome. Good on Apple, for real. Now let me download a huge archive locally, please. I know this can be done through Photos but I don't wanna do that. ZIP those puppies up and lemme download. https://twitter.com/...
Meanwhile conservative Republican @recobbforazrep is noting that Apple and Google can use data to copycat apps and then block them from their stores. The GOP are the ones fighting against tech monopolies in this case, Dems are pushing Chicago School libertarian ideas.
In 2016, I ran for 3rd District County Supervisor in Santa Barbara (and lost). I've been told (after) that, had I run for California State Assembly District 37, I might've had institutional support! Some days, I dream about the bills I could've floated ;P. https://www.theverge.co…
Arizona's House passes bill that threatens Apple and Google's app stores, saying that they must allow apps to take credit cards directly It was close, 31-29 But still needs to be passed by State Senate and not vetoed by Gov. Doug Ducey https://www.cnbc.com/...
This legislation aimed at reducing Apple and Google's power over their app stores passed the Arizona House very narrowly - 31-29 - with mainly Republicans backing the bill. After a barrage of corporate lobbying, only four Democrats voted in favor of it. https://www.protocol.com/.…
Wow. Read the quotes from lawmakers in other states. The cracks in the dam are spidering. Apple might be able to buy some of the votes in some of the states, but they won't be able to buy all the votes in all the states. This abusive setup will flood. https://twitter.com/...
Passed in the Arizona House. Introduced in Minnesota, New York, Illinois, and Georgia. With more coming, I expect. States are coming for Big Tech monopolists. https://www.economicliberties.us/ ...
One interesting side effect of Arizona's landmark App Store bill is that it could lure game devs to the state. Games make up a gigantic chunk of App Store revenues, and not having to pay 30 percent to Apple could convince even the biggest studios to relocate.
You know that Apple's monopoly power is out of control when people immediately think “they'll just cut off any state that dares to cross them”. So happy @recobbforazrep addressed threats like this head on: She will not be intimidated, and neither will Arizona ❤️ https://twitter.c…
A new challenge in building a tech company in the U.S. is the inconsistent regulatory landscape. Arizona is about to pass a law preventing Apple & Google from requiring 30% cut for in-app payments, Virginia & California have their own privacy laws, etc. https://www.theverge.com/.…
honestly? game consoles should have multiple digital stores too. the manufacturer charges a licensing fee off the top anyways, so they make money even if you buy a code at Walmart https://twitter.com/...
@nickstatt There are major studios in SoCal, such as Activision Blizzard and Riot Games. They could avoid Apple's and Google's #AppStore tax *and* California tax.
In a bizarre turn of events, Arizona Democrats were the main force opposing the legislation while Republicans accused Apple and Google of acting like monopolies. We'll see how the partisan politics play out in the AZ Senate. https://www.theverge.com/...
20. Fear is contagious. But so is courage. All over the country, the world, we're seeing courage in the face of corporate power. That's what happened when Australia stood up to Facebook. And it's what happened today, when Arizona stood up to Apple/Google. https://mattstoller.subs…
1. So something extraordinary happened today on the anti-monopoly front. And not where you'd expect. Not in Congress. Or at the Federal level. Or in Europe. But in Arizona. Some legislators stood up to Apple and Google. And they won. This is the story. https://mattstoller.substac…
Imagine a world where Apple and Google had to compete to be the best payment provider on their App Stores not just the only one. Would their fee be 30%? Would their terms be different? Would they work to make their payment simpler and easier for developers and customers alike? ht…
Arizona House passed a bill that would give mobile phone users more freedom to choose what apps they want to put on their phones, and lower the costs for developers. Apple craves its monopoly, of course, and is flooding the legislature with lobbyists. https://mattstoller.substack…
I wrote up how Apple/Google threatened North Dakota over an anti-monopoly proposal, and then how these titans were defeated by Arizona Republicans who want to break their monopoly power over app distribution. https://mattstoller.substack.com/ ...
I'm not prepared for the “actually, an iPad and a Nintendo Switch are basically the same thing” conversation to start up again. https://twitter.com/...
Just reading the history of amendments to the bill - a last minute modification added a provision carving out game consoles from requiring the inclusion of third party payment processors. Guessing Microsoft got to them?
“Documents revealed in a court case on ebooks proved Steve Jobs explicitly designed Apple's payment system policies to discourage people from switching from the iPhone”, I had not seen this smoking-gun email evidence before! Crikey. https://mattstoller.substack.com/ ...
It's not over yet, but in any event I agree it's a “[m]ajor loss for #Apple” (AND #Google) that a very aggressive counterlobbying effort couldn't prevent the bill from reaching this important milestone. That's because more and more politicians figure the problem out. @appfairness…
I'm not prepared for the “actually, an iPad and a Nintendo Switch are basically the same thing” conversation to start up again. https://twitter.com/...
This matters because it would likely attract companies to Arizona to avoid Apple and Google's hefty fees. @DHH of Basecamp is already saying they'll move there if it passes. The bill needs just 16 senate votes and the governor's signature to become law. https://twitter.com/...
The Arizona House just passed a bill that would be very bad news for Apple and Google. It'd prevent them from forcing apps in the state to use their payment systems, meaning they could evade the tech giants' up to 30% commissions. https://www.theverge.com/...
Pretty astounding outcome. Arizona House just advanced HB2005, the bill forcing Apple and Google to allow alternative payment systems. It's on its way to the state senate. https://www.theverge.com/...
Today's incredible win in the Arizona House for @recobbforazrep on her app store bill is the biggest win for tech antitrust in 20 years. https://www.theverge.com/...
Basecamp co-founder & CTO (maker of the Hey email app) says HB2005 advancing in the AZ House has them fully considering relocating the business to Arizona. That would be wild. https://twitter.com/...
Yes, the bill still has to go through the senate, but with the incredible momentum and awareness that @recobbforazrep has built for this cause, I'd expect it to pass. And we want to be ready on day one to take full advantage.
We are going to prepare app updates for both Android and iOS that give Arizonans the right to signup for service using our normal payment processing setup. Then start the conversation with lawyers on what it'll take to relocate Basecamp to Arizona. This means everything.
Representatives are afraid that THE RICHEST COMPANIES IN THE WORLD would retaliate against nonprofits if they can't shake down other businesses?? This is madness. https://twitter.com/...
You can see why Apple is fighting tooth, nail, and claws to keep its tollbooth privileges in place. Taking a 30% cut of other people's business is both easier and less expensive than innovating new blockbuster products. AND IT SCALES! https://twitter.com/...
If Apple can't shake down businesses for a 30% cut to their monopoly platform, it's like... forcing them to... *checks notes*... accept Bitcoin? Don't know whether to laugh or cry. https://twitter.com/...
This may be the first public endorsement by an Arizona Democratic politician of HB2005, the #OpentheAppStore bill. Not surprised that an entrepreneur would find this “the right thing to do.” The current tyranny (meaning *either* major app store) is hostile to entrepreneurialism. …
I hope @davidcicilline has a conversation with some of these progressives. The House Antitrust Subcommittee, spearheaded by the Dems, found Apple is a monopoly. https://twitter.com/...
We already have plans to get new versions of @heyhey released that are free from Apple's and Google's gag orders and restrictions on payment processing for Arizona residents. Would be amazing if we could start working on that after today's vote 🙏
I feel like I'm taking crazy pills. Progressive Democrat @Diego4Justice is on the floor debating on behalf of Apple and Google. “I'm confused why you're describing Apple as a monopoly when it has only 40% of the market.”
Democrats @KelliButlerAZ is just talking about interfering with Apple's right to contract. This is just so insane to have the progressives be the bulwark for big tech monopoly power.
Apple has Democrats attacking the app store anti-monopoly bill by attaching an amendment mandating all savings from the bill have to go to consumers. No, this doesn't make any sense. https://www.azleg.gov/...