North Dakota Senate bill targets 'monopolistic' app stores

Proponents of a North Dakota Senate bill say the legislation would clamp down on app stores seen as monopolistic, but opponents see it as interference and potentially harmful.

Sen. Kyle Davison, R-Fargo, on Tuesday introduced Senate Bill 2333 to the Senate Industry, Business and Labor Committee. The bill would ban app stores such as Apple and Google Play from requiring app developers to exclusively use their app store and payment system, and prohibit retaliating. Violations would be considered an unlawful practice under state law, opening a door to lawsuits.

"The purpose of the bill is to level the playing field for app developers in North Dakota and protect customers from devastating, monopolistic fees imposed by big tech companies," said Davison, referring to a 30% fee imposed by Apple and Google on in-app purchases, which he said penalizes small app developers "by raising prices and limiting choices for consumers."

Proponents of the bill said it addresses concerns of a monopoly by Apple and Google.

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"They control so much about what consumers can get, what businesses can do, and it really puts these businesses in a tough position," said Onsharp President and CEO Joe Sandin, of Fargo. His business develops apps.

DAWA Solutions Group President Jeff Zarling, of Williston, said the app stores have gone beyond distribution in having "injected themselves into every aspect of the revenue-generating model of every business that runs on their app store, in any transaction, anywhere down the line."

‏Source bismarcktribune.com