HR3209-119

What This Bill Does

The App Store Freedom Act regulates covered companies that operate an app store with more than 100 million U.S. users and control an operating system. Covered companies must allow third-party app stores and apps to be installed or set as defaults, permit hiding or deletion of preinstalled app stores, and give developers equivalent access to operating-system interfaces, hardware, software features, and documentation. They may not force in-app payment systems, require equal or better pricing, punish outside distribution or different pricing, block developer communications with users, or use nonpublic app business information to compete. The FTC enforces the rules as unfair or deceptive acts with civil penalties up to $1 million per violation, and state attorneys general may sue with notice to the FTC.

Who Benefits and How

App developers benefit because they can use outside payment systems, communicate with users, and distribute through alternative channels. Mobile app users benefit from more app-store choice, sideloading options, and the ability to remove preinstalled app stores. Third-party app stores benefit because covered platform operators must allow installation and default status. Payment processors benefit because developers cannot be forced into a covered company's in-app payment system.

Who Bears the Burden and How

Large mobile platform companies must open app distribution, payment, interface, and developer-communication practices. FTC enforcement staff must issue guidance, investigate violations, and pursue penalties up to $1 million per violation. State attorneys general must coordinate notice and intervention rules when bringing enforcement actions. Platform security teams must support alternative distribution while preserving warranty, IP, sanctions, export-control, and national-security exceptions.

Key Provisions

• Requires covered app-store operators to allow third-party app stores, sideloading, and default app-store choices.
• Prohibits forced in-app payment systems, pricing restrictions, retaliation, and communication limits on developers.
• Provides FTC and state attorney general enforcement with civil penalties up to $1 million per violation.
• Preserves antitrust authority, intellectual property rights, sanctions controls, export controls, and national security exceptions.