Minnesota and Arizona Bills Aim to Let Developers Skirt Apple's In-App Purchase Rules

After North Dakota tried and failed to pass legislation that would have paved the way for third-party App Store options, Minnesota and Arizona have introduced new bills that would loosen Apple's control over ‌App Store‌ developers.

app store blue banner
A Minnesota bill shared by Star Tribune would force Apple and Google to keep products from Minnesotan developers on their app stores even if those developers sell them directly or through other channels, skirting current in-app purchase rules.

Supporters of the bill believe the bill would allow developers in Minnesota to avoid the commissions collected by Apple and Google.

"A lot of people are concerned about the increased influence and power that Big Tech has, and I think there's a lot of interest in trying to make sure that we have a fair and open digital economy," said Rep. Zack Stephenson, DFL-Coon Rapids, who is sponsoring the bill in the House.

Lobbyists for Apple and Google have allegedly already started aiming to stop the proposal. "They are loading up," said Minnesota Representative Zack Stephenson. "I understand that they have been reaching out to some of my colleagues. I heard whispers of that occurring throughout the Capitol. I think we got someone's attention."

Apple does not allow developers to use their own in-app payment systems, instead requiring all apps that sell digital goods and subscriptions to do so through Apple's in-app purchase system. Apple collects a 15 to 30 percent fee from all in-app purchases.

Under the terms of the Minnesota bill, Apple and Google would not be allowed to retaliate against a developer for using an alternative system to charge customers, which is something that Epic Games tried to do last year. Epic attempted to use a direct payment option, violating Apple's ‌App Store‌ rules and resulting in the Fortnite app being removed from the App Store.

A similar bill in Arizona would also prevent developers from being forced to use Apple and Google's in-app purchase options. As highlighted by The Information earlier this week, the bill was advanced by the Arizona House committee and will now go to a broader vote.

North Dakota's failed bill would have allowed for third-party App Stores, also giving developers an alternative to Apple and Google's in-app purchase systems and fees, but it did not pass.

Apple Chief Privacy Engineer Erik Neuenschwander advocated against the North Dakota bill, telling the senate that it "threatens to destroy the iPhone as you know it" by requiring changes that would "undermine the privacy, security, safety, and performance" of the ‌‌‌iPhone‌‌‌.

U.S. antitrust regulators last year held an investigation into Apple's ‌App Store‌ fees and policies. The inquiry ultimately resulted in a 450 page report from the U.S. House Judiciary Antitrust Subcommittee recommending new antitrust laws to address Apple's monopoly over software distribution on iOS devices. That report has not yet led to any new laws.

Popular Stories

New Things Your iPhone Can Do in iOS 18

18 New Things Your iPhone Can Do in iOS 18.2

Wednesday November 27, 2024 5:05 am PST by
Apple is set to release iOS 18.2 in early December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls incoming as...
iphone 16 pro models 1

12 Reasons to Wait for Next Year's iPhone 17

Friday November 29, 2024 5:17 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
Whatsapp Feature

WhatsApp to Drop Support for These iPhones Starting May 2025

Monday December 2, 2024 2:57 am PST by
WhatsApp is set to end support for iOS versions older than iOS 15.1 from May next year, removing the chat platform's compatibility with several iPhone models in the process. From May 5, 2025, WhatsApp will no longer be compatible with iPhone 5s, iPhone 6, and iPhone 6 Plus models. Users with those devices won't be able to access the encrypted chat service after the specified date unless they ...
Apple AI Command Center Concept Mock 3

Apple Expected to Launch This All-New Device Next Year

Wednesday November 27, 2024 1:05 pm PST by
Apple is expected to kick off 2025 by launching an all-new smart home hub, also referred to as a "command center," as early as March. The hub is expected to feature around a six-inch display that can be attached to a tabletop base with a speaker, or mounted on a wall. The device is said to run a new "homeOS" operating system with a customizable widget-focused home screen, and it is expected...
iPhone 17 Pro Dual Tone Rectangle Feature 1

iPhone 17 Pro Already Rumored to Have These 8 New Features

Wednesday November 27, 2024 12:19 pm PST by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch for 10 more months, there are already plenty of rumors about the devices. An imaginative iPhone 17 Pro concept based on rumors Below, we recap key changes rumored for the iPhone 17 Pro models so far: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro ...
maxresdefault

The MacRumors Show: iPhone 17 Designs Revealed!

Friday November 29, 2024 9:34 am PST by
On this week's episode of The MacRumors Show, we discuss the recently leaked design of the iPhone 17 "Air" and iPhone 17 Pro. Subscribe to The MacRumors Show YouTube channel for more videos Earlier this week, a report from The Information's Wayne Ma revealed that the iPhone 17 Air will have a thickness of between 5mm and 6mm, which would make it the thinnest iPhone ever. In comparison, iPhone ...
airpods pro 2 gradient

AirPods Pro 3 Expected Next Year: Here's What We Know

Thursday November 28, 2024 3:30 am PST by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
Cyber Monday Deals Feature 2022

Apple Cyber Week Deals Available Now: AirPods, iPads, and More

Sunday December 1, 2024 7:52 am PST by
Although Black Friday has ended, Cyber Week is here and you can find great deals on numerous Apple devices right now. This includes big savings on AirPods, Apple Watch, MacBook Air, iPad, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Specifically,...

Top Rated Comments

Cwoods Avatar
49 months ago
This is ridiculous. If you decide to be an app developer you know Apple/Google get a cut of the in-app purchases. It’s their platform, they’re allowed. If you don’t like it, don’t have in-app purchases. Pretty simple.
Score: 45 Votes (Like | Disagree)
itsmeaustend Avatar
49 months ago
Do they plan to pay for the server resources to host the games? Fortnite was free on the App Store, IAPs was the only way Apple was profiting from it. You don't sell your product in a physical store and expect to do so for free, no, the store gets a cut too. It's just how life works (and how it should remain).
Score: 43 Votes (Like | Disagree)
MauiPa Avatar
49 months ago
Will this also mean we can buy stuff on Amazon without paying Amazon? Yay!
Score: 35 Votes (Like | Disagree)
natnorth Avatar
49 months ago

Will this also mean we can buy stuff on Amazon without paying Amazon? Yay!
I sell on Amazon and over the last 5 years I've watched their fees go from 42% of my sales to 50%... I would GLADLY pay Amazon 30% to sell!!!!
Score: 26 Votes (Like | Disagree)
Killbill2 Avatar
49 months ago
Follow the money of the promoters of these bills... who are lobbyists for which corporations that are doing this?
Score: 21 Votes (Like | Disagree)
natnorth Avatar
49 months ago

No but did you pay Microsoft or Apple when you used your Mac or PC to shop on amazon? No? Why not?

Because it is an operating system. Just like iOS and iPadOS.
Why would we pay? We don't pay Amazon for the privilege to buy from their store, we just buy! Sellers on Amazon pay Amazon not only to be able to sell on their platform but also a commission on each sale. it's the same with Apple, Steam, Google, etc... you want to sell in the store then you pay for that.

You are free to use your iPhone/iOS/Android/whatever without using the store if you don't want to... no charge!
Score: 19 Votes (Like | Disagree)