This legislation seeks to foster a more competitive app marketplace by establishing specific requirements for "covered companies," defined as large app store operators that also control the underlying operating system. These companies must enable users to select third-party apps or app stores as defaults, install applications from outside the company's own store, and remove pre-installed apps. Additionally, they are mandated to provide app developers with timely and free access to operating system interfaces, hardware, and software features, along with necessary documentation, on terms equivalent to those offered to their own business partners. The bill explicitly prohibits several anti-competitive behaviors. Covered companies may not require developers to use their proprietary in-app payment systems or impose conditions that dictate pricing or terms of sale must be equal or more favorable on their platforms. They are also forbidden from taking punitive actions against developers for offering different pricing or using alternative payment systems, or from interfering with developers' legitimate business communications with users. Furthermore, the use of nonpublic business information derived from developers' apps to compete against those developers is strictly prohibited. Enforcement of these provisions will be primarily handled by the Federal Trade Commission , which can treat violations as unfair or deceptive acts and impose civil penalties of up to $1,000,000 per violation. States are also empowered to bring civil actions to protect their residents, with the FTC having the right to intervene. The Act clarifies that it does not compel the licensing of intellectual property, require customer service for third-party apps, or limit actions taken to protect intellectual property rights or national security interests.
This legislation seeks to foster a more competitive app marketplace by establishing specific requirements for "covered companies," defined as large app store operators that also control the underlying operating system. These companies must enable users to select third-party apps or app stores as defaults, install applications from outside the company's own store, and remove pre-installed apps. Additionally, they are mandated to provide app developers with timely and free access to operating system interfaces, hardware, and software features, along with necessary documentation, on terms equivalent to those offered to their own business partners. The bill explicitly prohibits several anti-competitive behaviors. Covered companies may not require developers to use their proprietary in-app payment systems or impose conditions that dictate pricing or terms of sale must be equal or more favorable on their platforms. They are also forbidden from taking punitive actions against developers for offering different pricing or using alternative payment systems, or from interfering with developers' legitimate business communications with users. Furthermore, the use of nonpublic business information derived from developers' apps to compete against those developers is strictly prohibited. Enforcement of these provisions will be primarily handled by the Federal Trade Commission , which can treat violations as unfair or deceptive acts and impose civil penalties of up to $1,000,000 per violation. States are also empowered to bring civil actions to protect their residents, with the FTC having the right to intervene. The Act clarifies that it does not compel the licensing of intellectual property, require customer service for third-party apps, or limit actions taken to protect intellectual property rights or national security interests.