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Arizona Advances Bill That Will Let Developers Skirt Apple's In-App Purchase Rules

The Arizona House of Representatives today passed HB2005, a state bill that would provide developers with an alternative to Google and Apple's in-app purchase options by allowing developers to use their own payment solutions within apps.

app store blue banner
Last week, the Arizona House Committee advanced the bill, and now it has also been approved by the House of Representatives. It will next be heard by the Arizona Senate.


Apple and Google have been lobbying aggressively against the bill for weeks now because it would let developers use third-party payment options to avoid the 15 to 30 percent cut that Apple takes from app purchases an in-app payments.

In a hearing last week, Apple chief compliance officer Kyle Andeer called HB2005 a "government mandate that Apple give away the App Store."

"This would allow billion-dollar developers to take all of the app store's value for free, even if they're selling digital goods, even if they're making millions or billions of dollars doing it. The bill is a government mandate that Apple give away the app store."

Apple last month successfully fought back against a similar bill in North Dakota, which would have paved the way for third-party app store options.

Like the North Dakota bill, the Arizona bill was backed by the Coalition for App Fairness, a group that includes companies like Epic Games, Spotify, Basecamp, and Tile, all of whom have had significant issues with Apple's ‌App Store‌ rules. There's a similar bill in Minnesota that Apple is also battling against.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

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Top Rated Comments

74 months ago
Apple should just not allow Developers in arizona. Easy solution!

I like how game consoles are excluded for no apparent reason.
Score: 23 Votes (Like | Disagree)
Goodeye Avatar
74 months ago
I hate my state some times.

WAY more important things to be working on and dealing with in this state and they are worried about this crap.
Score: 21 Votes (Like | Disagree)
74 months ago

Why would it hurt consumers? And of course it hurts developers they take 15- 30 % off of thin air because they say they “protect the store”
Sigh......

They don’t provide “nothing” for 15-30%. They provide payment processing, app review, certification, distribution (globally), tax payments (globally), tax documentation (globally), customer service support, advertising, API development, API services support...

The payment processing alone costs 25% in some countries in Asia and Latin America.

30% is a steal for what they get in return.
Score: 19 Votes (Like | Disagree)
Apple Freak Avatar
74 months ago
I hope it becomes obvious which developers choose to skirt app store rules so I know not to download apps from them ever.
Score: 16 Votes (Like | Disagree)
G5isAlive Avatar
74 months ago

Apple should just not allow Developers in arizona. Easy solution!

I like how game consoles are excluded for no apparent reason.
The problem is this is going to be like incorporating a business in Delaware, the small sliver of land that somehow has 67% of all fortune 500 companies incorporating there, and countless smaller companies. Delaware has made itself a haven for anonymous incorporation, lower taxes, etc, so a number of companies regardless of where they do business, incorporate in Delaware. If this goes through you will see a lot of sham operations relocating in Arizona to take advantage of this loophole. This is politics at its worst.
Score: 12 Votes (Like | Disagree)
Michael Scrip Avatar
74 months ago

The additional things Apple provides need to broken out

That isn't difficult. Apple needs to get in front of this or they are going to get forced. Momentum is just getting going and building.
Here's a list from a developer... MacRumors user farewelwilliams

- we developers get up to 1 petabyte of user storage via CloudKit 100% free. Bear notes app does this and they manage 0 servers for their subscription-paid users.
- we could submit 1000 app and app updates in a year which translates to Apple paying about 1000 man-hours worth of paychecks at about $30/hr or ~$30k for app review
- we have free access to using Apple Maps instead of paying Google tons of money to use their mapping API keys (for those high volume users). this saves Yelp and Facebook a ton of money as well as small developers.
- we get many more new features every single year via the SDK compared to Android (like ARKit, Core ML, SwiftUI, Vision, etc... just to name a few).
- we get global distribution for free (including China, you know, where Google Play doesn't exist. also developers generally have to setup their own servers in China because of the great firewall, but if you used CloudKit, it just works without any extra setup).
- we get app store curated editorial with a chance to reach front page in front of 500 million customers a week.
- we have no credit card fees or international taxes to worry about
- Apple provides support to customers asking for refund for an app and app store support in general
- Testflight service is free (for public and private testing)
- app store automatically creates many different binaries of our app and distributes device-optimized versions to each customer. a 1 gigabyte app with many different permutations of versions across hundreds of servers around the world means Apple is hosting about several terabytes in the cloud for us from one single app
- push notifications/push notification sandbox servers
- Web SDK version of cloudkit/mapkit so that you can use it for a web version of your app
- Apple sign in
- Mac notarization service which improves trust by the user for downloading an app from the web
- yearly major releases of Xcode with new features
- analytics dashboard and crash reporting
- and the list goes on and on.

I ask you... do you think all that should just be free? Should a developer get to use all those resources and Apple gets nothing in return?
Score: 9 Votes (Like | Disagree)
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