This bill, known as the "App Store Freedom Act," seeks to foster a more competitive environment within the app marketplace by regulating the practices of large app store and operating system providers. It targets "covered companies" that own both an app store with over 100 million U.S. users and the underlying operating system. The legislation mandates that these companies allow users to choose third-party app stores or apps as defaults, install apps from outside the primary app store, and hide or delete pre-installed applications. Furthermore, the bill requires covered companies to provide app developers with timely, cost-free, and equivalent access to operating system interfaces, hardware, software features, and necessary documentation. It explicitly prohibits practices such as requiring developers to use the covered company's in-app payment system or imposing less favorable terms for apps distributed elsewhere. Companies are also forbidden from interfering with developers' legitimate business communications with users or using nonpublic business information derived from a developer's app to compete against that app. Enforcement of these provisions falls primarily to the Federal Trade Commission (FTC) , which can treat violations as unfair or deceptive acts and impose civil penalties of up to $1,000,000 per violation. State attorneys general are also authorized to bring civil actions on behalf of their residents. The bill clarifies that it does not limit existing FTC authority, require companies to provide warranty or customer service for issues caused by third-party apps, or compel the licensing of intellectual property, nor does it require collaboration with sanctioned entities or foreign adversaries.
This bill, known as the "App Store Freedom Act," seeks to foster a more competitive environment within the app marketplace by regulating the practices of large app store and operating system providers. It targets "covered companies" that own both an app store with over 100 million U.S. users and the underlying operating system. The legislation mandates that these companies allow users to choose third-party app stores or apps as defaults, install apps from outside the primary app store, and hide or delete pre-installed applications. Furthermore, the bill requires covered companies to provide app developers with timely, cost-free, and equivalent access to operating system interfaces, hardware, software features, and necessary documentation. It explicitly prohibits practices such as requiring developers to use the covered company's in-app payment system or imposing less favorable terms for apps distributed elsewhere. Companies are also forbidden from interfering with developers' legitimate business communications with users or using nonpublic business information derived from a developer's app to compete against that app. Enforcement of these provisions falls primarily to the Federal Trade Commission (FTC) , which can treat violations as unfair or deceptive acts and impose civil penalties of up to $1,000,000 per violation. State attorneys general are also authorized to bring civil actions on behalf of their residents. The bill clarifies that it does not limit existing FTC authority, require companies to provide warranty or customer service for issues caused by third-party apps, or compel the licensing of intellectual property, nor does it require collaboration with sanctioned entities or foreign adversaries.