Apple Gets Legislative Victory in North Dakota For Now

The North Dakota senate voted in opposition of advancing a bill that would have required app stores to enable software developers to use their own payment processing software. This bill directly addressed fees charged by both Google and Apple.

So what would the bill have addressed? 

The proposal applies to a digital application distribution platform for which cumulative gross receipts from sales on the digital application distribution platform to residents of this state exceed ten million dollars in the previous or current calendar year which uses:

• The platform to provide an application that was created by a person domiciled in this state to a user; or

• The platform to provide an application to a resident of this state.

A provider of a digital application distribution platform may not:

a. Require a developer to use the provider's digital application distribution platform as the exclusive means of distributing a digital product to a user. 

b. Require a developer to use the provider's digital transaction platform or in- application payment system as the exclusive means for accepting payment from a user to download the developer's software application, or purchase a digital or physical product or service created, offered, or provided by the developer through a software application.

c. Retaliate against a developer for choosing to use another digital application distribution platform, digital transaction system, or in-application payment system. 

d. Refuse to allow a developer to provide the provider's application or digital product to or through the provider's platform or system or refuse to allow a user access to the developer's application or digital product through the provider's platform or system, on account of the developer's use of another platform or system. A violation of this subdivision is considered retaliation under this section.

If the North Dakota bill would have advanced through the Senate and into the House, this may have spurred other states to take similar measures, as we have seen with legislation that addresses landmark major policy issues. For example Arizona is considering similar legislation.

Now the title of this blog post is “Apple Gets Legislative Victory in North Dakota For Now.” If you listen to the 2/16/21 CNBC interview with State Senator Kyle Davison (R-ND), Senator Davison states something along the lines of if the bill is defeated in the vote today then nothing is really dead until the legislative session is over.

We at  Lanton Law have seen several times in multiple states that when ideas are deemed to be dealt with through a legislative defeat, sometimes that “dead” bill  comes back during the same session in a companion bill, a budget bill or some other “rider.” Many times it comes down to how determined the legislator is at seeing something accomplished. 

This bill is a prime example of how technology stakeholders and stakeholders in other similar sectors are finding that they have to increase their awareness of state and federal policy in order to remain cognizant of fast moving trends and to ultimately ensure compliance. 

We at Lanton Law can help. Our legal and lobbying tools can help offer your organization a clear path forward to navigate what will be changing policies for technology, healthcare and clean energy stakeholders. We are a D.C. based firm with no state boundaries as we are active nationwide. Contact us today to discuss your options.