App StoreSource: Joe Keller / iMore

What you need to know

  • The bill was approved, 31-29.
  • It could change how those in Arizona pay for apps.
  • Apple strongly opposes the bill.

In a vote viewed as a setback to Apple, the Arizona House of Representatives on Wednesday voted 31-29 to pass a bill that could change how buyers pay for apps.

According to CNBC, the legislation, which still has challenges ahead before it becomes law, requires app stores to allow app makers to use their own payment processing software for transactions.

Heavily pushed by the Coalition for App Fairness and strongly opposed by Apple and Google, HB 2005 targets the fees associated with the App Store and Google Play Store, respectively. Though the bill doesn't specifically target any companies, it's clear those two companies have the most to lose if it becomes law.

Currently, both companies charge developers up to 30% on every app purchase. Under the bill, developers could offer alternative payment processors — at least in the state of Arizona. A similar bill that Apple also opposed was defeated in North Dakota earlier this year.

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According to Arizona State Rep. Regina Cobb (R), who sponsored the bill, "I think they have a monopoly on the market right now. There isn't anybody in here that doesn't have a Google Android or Apple phone, I guarantee it."

Arizona State Rep. Diego Rodriguez (D), who opposed the bill, said, "Arizona does not have an interest in this fight. We don't have a dog in this fight, what we need to do is be focused on policies that are protecting consumers. This bill does not protect consumers, it protects a $1 billion company from another billion-dollar company."

It will soon be the Arizona Senate's turn to look at the bill. If approved there, it will go to Arizona Gov. Dough Ducey (R) for his signature or veto.