What just happened? A new bill introduced in Congress aims to challenge Apple's and Google's control over mobile app marketplaces. If passed, it could transform how millions of Americans access apps and reshape the business models of the largest tech companies.
A new bill introduced in the US House of Representatives could change how Americans use and access mobile apps. The App Store Freedom Act, spearheaded by Representative Kat Cammack of Florida, directly targets the dominance of tech giants like Apple and Google in the mobile app marketplace. While the legislation does not mention these companies by name, it explicitly targets any app store with over 100 million US users, a threshold only Apple and Google currently meet.
If enacted, the bill would require major app store operators to allow users to install third-party app stores and set them as the default option. This move is designed to increase competition and consumer choice.
It would also mandate that users be able to remove or hide pre-installed apps, and allow for "sideloading" – the installation of apps from outside the official store.
The legislation prohibits several practices that have drawn criticism from developers and regulators. App stores would be banned from forcing developers to use proprietary payment systems, imposing pricing parity requirements across platforms, or penalizing developers for distributing their apps elsewhere.
The bill also forbids platform owners from using nonpublic business information derived from developers' apps to compete against those developers. Furthermore, it would prevent platform owners from restricting developers' communication with users about business offers, provided user consent rules are followed.
Enforcement would be handled by the FTC and state attorneys general, with violations classified as unfair or deceptive acts under the FTC Act. Penalties could reach up to $1 million per violation. The bill would preempt conflicting state laws while preserving state-level rules on contracts, torts, and data security.
The push for this legislation comes amid a global reckoning over the power of major tech companies. In Europe, similar rules under the Digital Markets Act have already led to significant changes. Apple was fined €500 million for limiting how developers could communicate with users about sales and promotions and was ordered to remove technical and commercial barriers that hindered competition. Google has also made adjustments in response to EU regulations, such as adding a browser choice screen during device setup.
In the US, a federal judge recently ordered Apple to immediately halt practices that limit competition on its app store and maintain high commissions on app sales. A long-fought battle partially won by Fortnite-maker Epic Games.
Reactions to the App Store Freedom Act are divided. Supporters, including the Coalition for App Fairness – which represents companies like Epic Games, Spotify, and Match Group – argue that the bill is necessary to end anti-competitive practices.
Conversely, industry groups such as the Computer & Communications Industry Association warn that the legislation could undermine security and expose users to greater risks from malicious apps. They argue that platform owners need flexibility to respond to evolving threats.