STATE CAPITOL, PHOENIX – State Representatives Regina Cobb and Leo Biasiucci announced their support for HB 2005, legislation that would protect consumers and app developers from devastating fees imposed by big tech monopolies and encourage companies to relocate to Arizona.
To reach consumers, all app developers must go through Apple and Google’s monopoly-controlled app distribution stores. With this monopoly, app developers that offer digital services, like music or games, are forced to exclusively use Apple and Google’s in-app payment processing. Developers are charged a 30% processing tax referred to as the “App Tax” for a service they are forced to use, rather than a traditional payment processing fee of 3%. This tax not only penalizes small app developers but also limits choice for consumers and forces Arizonans to pay more.
HB 2005 would allow small app developers to provide payment options to their customers rather than being forced to use solely the dominant platform’s service, freeing them from the “App Tax” and lowering costs for consumers. Additionally, the bill would allow companies that operate in Arizona to apply payment options to any customer across the country, which would create a huge incentive for companies to move here.
“HB 2005 introduces competition into a monopoly,” said Representative Cobb. “The bill provides real savings for Arizona families and developers who are no longer subject to the exorbitant fees. Too often, developers are required to use the big tech payment processing systems or risk being removed from the app store altogether, a hostage situation that costs Arizona consumers and businesses throughout the U.S.”
“Arizonans should not be forced to live under the monopolistic regime implemented by big tech,” said Representative Biasiucci. “They control the access, they control the data, and it’s time to stand up for the companies who are subject to this ridiculous scheme and the everyday Arizonan that subsidizes Apple and Google’s record profits. HB 2005 is a win-win for this state: it creates competition in the marketplace, makes app purchases and subscriptions more affordable, and will bring companies running to Arizona by allowing them to operate in the marketplace more freely.”
HB 2005 will be heard in the House Appropriations on Monday, February 22.
Regina Cobb and Leo Biasiucci are Republican members of the Arizona House of Representatives serving Legislative District 5, which includes La Paz and Mohave Counties.